Choices of Marketing Outlets by Organic Producers: Accounting for Selectivity Effects
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Timothy Park
Organic farmers have traditionally relied on a variety of marketing channels, suggesting that earned organic income will depend on the farmer's experience in producing and selling organic products and their comparative advantage in bargaining and marketing skills. A discrete choice model of the choice of marketing channels is developed which accounts for the role of selectivity bias. Farmers who are most likely to sell through a diversified set of outlets or to use a single outlet have increased earnings relative to farmers who overlook these marketing options. Producers with less experience gravitate toward use of a single marketing outlet while more experienced producers tend to diversify and market through all three channels. Constraints in selling organic products tends tend to have a negative effect on farm income.
©2011 Walter de Gruyter GmbH & Co. KG, Berlin/Boston
Articles in the same Issue
- Article
- Strategic Labeling and Trade of GMOs
- Ensuring a Safe Food Supply: The Importance of Heterogeneity
- Less Choice is Better, Sometimes
- Choices of Marketing Outlets by Organic Producers: Accounting for Selectivity Effects
- Effects of Sales on Brand Loyalty
- Imperfect Competition and Strategic Trade Theory: Evidence for International Food and Agricultural Markets
- Market Power and European Competition in the Swedish Food Industry
- Market Segmentation Analysis of Preferences for GM Derived Animal Foods in the UK
- Proving Anti-Competitive Conduct in the U.S. Courtroom: Economic Issues with the Courts' Opinions in Pickett v. Tyson Fresh Meats, Inc.
Articles in the same Issue
- Article
- Strategic Labeling and Trade of GMOs
- Ensuring a Safe Food Supply: The Importance of Heterogeneity
- Less Choice is Better, Sometimes
- Choices of Marketing Outlets by Organic Producers: Accounting for Selectivity Effects
- Effects of Sales on Brand Loyalty
- Imperfect Competition and Strategic Trade Theory: Evidence for International Food and Agricultural Markets
- Market Power and European Competition in the Swedish Food Industry
- Market Segmentation Analysis of Preferences for GM Derived Animal Foods in the UK
- Proving Anti-Competitive Conduct in the U.S. Courtroom: Economic Issues with the Courts' Opinions in Pickett v. Tyson Fresh Meats, Inc.
