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| Kuwornu, John K.M.; Kuiper, W. Erno; Pennings, Joost M.E.; Meulenberg, Matthew T.G.. |
| We specify a principal-agent marketing channel involving producers, wholesalers, retailers and a futures market. Our hedge ratio for producers appears to be much lower than the common price-risk minimising ones as we account for producers vertical contracts and, by using annual data, their production horizon. The Dutch ware potato marketing channel and its futures market in Amsterdam show that possibly through decreases in producers and wholesalers risk aversions, their optimal dynamic hedge ratios decreased from 38% and 12%, respectively, in 1982 to 18% and 10%, respectively, in 2003. These results comply with the decreased futures volume traded in Amsterdam over the years. |
| Tipo: Conference Paper or Presentation |
Palavras-chave: Principal-Agent Model; Risk Management; Futures and Spot Market Contracts; Production Horizons; Food Marketing Channels; Marketing; Risk and Uncertainty. |
| Ano: 2006 |
URL: http://purl.umn.edu/7755 |
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| Kuwornu, John K.M.; Kuiper, W. Erno; Pennings, Joost M.E.; Meulenberg, Matthew T.G.. |
| We examine the interaction of marketing channel members and the influence of these interactions on incentives, coordination costs, and risk allocation strategies in a food marketing channel. For this purpose we specify a three-stage principal-agent marketing channel model involving producers, wholesalers, retailers and a futures market. We compare the situation with and without futures market. The empirical results regarding the Dutch ware potato marketing channel during 1971-2003 reveals that, possibly as a result of increases in incentives to producers and wholesalers, the coordination costs of the marketing channel decreased significantly, both with and without futures trade. The coordination costs of a marketing channel with a futures market are lower... |
| Tipo: Conference Paper or Presentation |
Palavras-chave: Contracts; Risks; Coordination Costs; Futures Markets; Food Marketing Channels; Agribusiness; Marketing. |
| Ano: 2006 |
URL: http://purl.umn.edu/7740 |
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