Progress 09/15/05 to 09/14/08
Outputs
OUTPUTS: In 2008, the NICPRE newsletter was published and distributed four times, which contained research articles (from Cornell and other universities) on generic advertising and promotion economics. One NEC-63 (research organization on commodity promotion economics) conference was organized and held in Hilton Head, South Carolina (spring). A theoretical study was completed that showed under which conditions large firms would benefit more than small firms (and vice versa) by a nonparallel increase in demand caused by generic promotion. This study, accepted for publication by the journal Applied Economics, is important because the basic model can be used by any industry and can provide insight in establishing minimum thresholds for exempting small firms from having to pay for generic promotion programs. An economic analysis of generic butter and cheese advertising in Canada was completed. The results indicate that cheese advertising is far more effective in Canada than is butter advertising. An experimental analysis on several proposed policies for lowering quota values in Quebec was completed. The results suggest that a policy that excludes the highest 15 percent of bids and offers has the greatest impact on reducing quota values. One study completed in an earlier period and reported on last year on an experimental study of the problem with generic advertising was published in 2008. Two studies on the effectiveness of U.S. rice export promotion, which were completed in 2007, were submitted to and accepted by two academic journals for publication (Agribusiness: An International Journal and Applied Economics). PARTICIPANTS: In 2008, my collaborators on this project were Dr. Yuqing Zheng, Dr. Kent Messer, Dr. William Schulze, Dr. Maurice Doyon, Dr. John Cranfield, and Ms Pimbucha Rusmevichientong. Dr. Zheng worked on the nonparallel demand increase paper with me. Drs. Messer and Schulze worked on the problem with generic advertising paper. Dr. Doyon worked on the two Canadian projects, while Dr. Cranfield worked on the Candian generic butter and cheese advertising evaluation. Ms. Rusmevichientong was an M.S. graduate student who did her thesis on U.S. rice export promotion. She worked on econometric analysis, simulation, and report writing on these two studies. TARGET AUDIENCES: Target audience includes: other researchers interested in commodity promotion economics; United States Department of Agriculture; management of various commodity promotion checkoff programs; several state departments of agriculture. Efforts include: extension and outreach; oral presentations on research results; written reports on research results; preparing popular press articles; workshops, industry feedback meetings. PROJECT MODIFICATIONS: Nothing significant to report during this reporting period.
Impacts
This project impacted policy makers and researchers. Researchers were impacted because several methodological studies were published that pushed out the frontiers in applied econometrics. Policy makers were impacted since they benefited from new information regarding the impacts of commodity promotion programs.
Publications
- Zheng, Yuqing and Harry M. Kaiser. Nonparallel Demand Increases in an Asymmetric Cournot Oligopoly. Applied Economic Letters. 2008.
- Messer, Kent, Harry M. Kaiser, William Schulze. The Problem with Generic Advertising: Parallelism and Possible Solutions from the Lab. American Journal of Agricultural Economics. 90(2008):540-552.
- Rusmevichientong, Pimbucha and Harry M. Kaiser. Measuring the Effectiveness of U.S. Rice Export Promotion Programs. NICPRE Quarterly. First Quarter, 2008: pp. 1-4.
- Doyon, M., L.D. Tamini, V. Simard, K. Messer and H. Kaiser. An Analysis of Modifications to the Centralized Milk Quota Exchange System in Quebec using Experimental Economics. Canadian Journal of Agricultural Economics. 56(2008):295-312.
- Kaiser, Harry M., John Cranfield, and Maurice Doyon. An Economic Analysis of Generic Advertising and Promotion Activities by Dairy Farmers of Canada. Second Quarter, 2008: pp. 1-4.
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Progress 09/15/06 to 09/14/07
Outputs
OUTPUTS: The NICPRE newsletter was published and distributed four times, which contained research articles (from Cornell and other universities) on generic advertising and promotion economics. Two NEC-63 (research organization on commodity promotion economics) conferences were organized and held in Parma, Italy (spring) and Vancouver, British Columbia (fall). Two studies were completed on the effectiveness of U.S. rice export promotion. The first study found U.S. rice export promotion to be profitable. Average benefit-cost ratios were computed for U.S. rice export promotion based on a range of excess supply own price elasticities (from 1 to 10). The BCRs ranged from 30.05 for the most inelastic estimate, to 5.51 for the most elastic. Since all of these values were well above 1.0, the main policy conclusion was that the benefits of export promotion programs in terms of enhancing producer welfare have been much greater than the costs of the programs. The other study examined the direct
and cross effects of grain export promotion for rice, wheat, and sorghum. In terms of benefit-cost ratios, the direct effects of U.S. rice, wheat, and sorghum export promotion is benefiting grain producers in the United States. In terms of total effects, U.S. rice and wheat promotion is beneficial to rice, wheat, and sorghum producers combined, but U.S. sorghum promotion is not benefiting all three grains combined.
PARTICIPANTS: In 2007, my collaborators on this project were Dr. Kent Messer and Ms Pimbucha Rusmevichientong. Dr. Messer was in charged of the economic experiments for several studies, including design, carrying them out, analysis, and report writing. Ms. Rusmevichientong was an M.S. graduate student who did her thesis on U.S. rice export promotion. She worked on econometric analysis, simulation, and report writing on these two studies.
TARGET AUDIENCES: Target audience includes: other researchers interested in commodity promotion economics; United States Department of Agriculture; management of various commodity promotion checkoff programs; several state departments of agriculture. Efforts include: extension and outreach; oral presentations on research results; written reports on research results; preparing popular press articles; workshops, industry feedback meetings.
Impacts
This project impacted policy makers and researchers. Researchers were impacted because several methodological studies were published that pushed out the frontiers in applied econometrics. Policy makers were impacted since they benefited from new information regarding the impacts of commodity promotion programs.
Publications
- Alston, J.M., J.M. Crespi, H.M. Kaiser and R.J. Sexton. 2007. An Evaluation of Californias Mandated Commodity Promotion Programs. Review of Agricultural Economics. 29(2007):40-63.
- Messer, K.D., H.M. Kaiser, C.Payne and B. Wansink. 2007. Advertising Could Calm Food Safety Fears. Food Navigator August 14, 2007.
- Myrland, O., D. Dong and H.M. Kaiser. 2007. Price and Quality Effects of Generic Advertising: The Case of Norwegian Salmon. Agribusiness: An International Journal. 23(2007):85-100.
- Rusmevichientong, P. and H.M. Kaiser. 2007. An Economic Analysis of U.S. Rice Export Promotion Programs. Agricultural and Resource Economics Review. 36(2007):357.
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Progress 09/15/05 to 09/15/06
Outputs
Several projects were completed in 2006. First, the NICPRE newsletter was published and distributed four times, which contained research articles (from Cornell and other universities) on generic advertising and promotion economics. Second, two NEC-63 (research organization on commodity promotion economics) conferences were organized and held in Monterey, California (spring) and Auburn, Alabama (fall). Over 125 people attended these two conferences. Third, a study was completed that looks at whether generic advertising can mitigate some of the negative impacts of food scares. Specifically, using an experimental economics approach, we examined whether beef advertising can offset the negative impacts of media-induced fears about mad cow disease. The results show that generic beef advertising (Beef: It's Whats for Dinner) eliminated most of the negative effects of televisions' information about the 2003 outbreak of mad cow disease in Washington State. Finally, a book was
published on the New Empirical Industrial Organization and the food system. Much of the focus of the book deals with generic advertising evaluation using imperfect competition models.
Impacts
This project impacted policy makers and researchers. Researchers were impacted because several methodological studies were published that pushed out the frontiers in applied econometrics. Policy makers were impacted since they benefited from new information regarding the impacts of commodity promotion programs.
Publications
- Kaiser, H.M. and Suzuki, N. 2006. New Empirical Industrial Organization and the Food System: Summary. in New Empirical Industrial Organization and the Food System. Harry M. Kaiser and Nobuhiro Suzuki (editors). pp. 331-340, Peter Lang Publishing, Inc., New York City.
- Kaiser, H.M. and Suzuki, N. (editors). 2006. New Empirical Industrial Organization and the Food System. Peter Lang Publishing, Inc., New York City.
- Kaiser, H.M. 2006. Economists Evaluation of Checkoff Programs. Paper Presented at the NEC 63 Research Conference on Commodity Advertising and Promotion, Monterey, California, March 9.
- Kawaguchi, T., Suzuki, N. and Kaiser, H.M. 2006. A Spatial Equilibrium Model for Imperfectly Competitive Milk Markets. in New Empirical Industrial Organization and the Food System. Harry M. Kaiser and Nobuhiro Suzuki (editors). pp. 231-248, Peter Lang Publishing, Inc., New York City.
- Kinoshita, J., Suzuki, N. and Kaiser, H.M. 2006. Explaining Pricing Conduct in a Product-Differentiated Oligopolistic Market: An Empirical Application of a Price Conjectural Variations Model. in New Empirical Industrial Organization and the Food System. Harry M. Kaiser and Nobuhiro Suzuki (editors). pp. 271-284, Peter Lang Publishing, Inc., New York City.
- Messer, K.D., Kaiser, H.M., Payne, C. and Wansink, B. 2006. Advertising Power to Inoculate Food Safety Fears. Paper Presented at the NEC 63 Research Conference on Commodity Advertising and Promotion, Auburn, Alabama, October 12.
- Suzuki, N. and Kaiser, H.M. 2006. New Empirical Industrial Organization and Their Applications to Food System Analyses. in New Empirical Industrial Organization and the Food System. Harry M. Kaiser and Nobuhiro Suzuki (editors). pp. 3-64, Peter Lang Publishing, Inc., New York City.
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