A Spatiotemporal Quality Competition Model of the Australian Sugarcane Processing Industry

G. J. Ryland and J. W. B. Guise

American Journal of Agricultural Economics, 1975, vol. 57, issue 3, 431-438

Abstract: An activity analysis model is developed to determine the optimum period of production at a chain of sugarcane processing plants and the optimal regional transport network flows of cane and raw sugar. Explicit treatment is given to discrete variations in input quality which affect revenue at each plant location in each time period. Optimal solutions to three market configurations open to a multifacility monopolist—spatiotemporal quality competition, spatial quality competition, and pure competition—are obtained. Results suggest that, for given output, industry net revenues can be increased when explicit consideration is given to input quality variations relative to industry net revenues associated with treating inputs as homogeneous.

Date: 1975
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Persistent link: https://EconPapers.repec.org/RePEc:oup:ajagec:v:57:y:1975:i:3:p:431-438.

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