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DISCRIMINATORY PRICING UNDER A U.S. PRODUCER BOARD

Philip L. Paarlber and Forrest D. Holland

No 276746, Staff Reports from United States Department of Agriculture, Economic Research Service

Abstract: This study simulates the consequences of replacing the competitive market for wheat and feed grains in the United States with a producer marketing board daich practices price discrimination. A U.S. producer board for wheat and feed ;rains would increase prices in the nonfeed and export markets by reducing sales in those markets. Further, board carry-out stocks would rise, while prices in lonboard markets would fall to the loan rate. U.S. growers would receive wind- fall rents, most of which would be income transfers from U.S. consumers. The Rifted States would receive a monopoly rent from foreign consumers. The board policy would support foreign producers through windfall gains. Finally, the board's operation would reduce the variability in grain prices.

Keywords: Crop Production/Industries; Demand and Price Analysis; Marketing (search for similar items in EconPapers)
Pages: 29
Date: 1982-08
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Citations: View citations in EconPapers (1)

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Persistent link: https://EconPapers.repec.org/RePEc:ags:uerssr:276746

DOI: 10.22004/ag.econ.276746

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