Conference Agenda
Overview and details of the sessions of this conference. Please select a date or location to show only sessions at that day or location. Please select a single session for detailed view (with abstracts and downloads if available).
Please note that all times are shown in the time zone of the conference. The current conference time is: 10th Sept 2026, 07:04:50pm CEST (Norway)
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Daily Overview |
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Public goods provision and equity Location: Auditorium B: Frøystein Gjesdal Session Chair: Benjamin Ouvrard, GAEL, INRAE | |
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Fair Pricing and Excess Supply 1: Orfalea College of Business, California Polytechnic State University, San Luis Obispo, San Luis Obispo, CA; 2: GAEL, INRAE, France There is growing concern over the link between international trade in coffee, cocoa, and oilseed markets and the rate of tropical rainforest deforestation in developing countries. In this paper, we consider the potential role of fair pricing agreements commonly employed for these farm products in causing excess farm supply conditions that increase the market pressure foragricultural land development. We demonstrate that a fair pricing standard has the effect of decoupling farm supply from the retailer's optimization problem, resulting in retail prices that maximize sales revenue in the downstream consumer market. We show this disconnect between revenue and cost in downstream retail markets can cause agricultural products to be oversupplied in upstream farm product markets, even for small increments in price fairness to farmers. We design an experiment to test the implications of fair pricing agreements for market behavior, and find that fair pricing agreements, when accepted, generate a significant increase in excess supply. | |