Private‐Value Auction Versus Posted‐Price Selling: An Agent‐Based Model Approach

Boyer, Christopher N.; Brorsen, B. Wade; Fain, James R.

doi:10.1002/isaf.1381

Cited by 3 publications

(2 citation statements)

References 28 publications

(80 reference statements)

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“…In this experiment, the monthly wholesale prices from 2013 were used as the estimated prices of 2014. Same with previous researches (Hamm et al 2007;Boyer et al 2015), we used random rotation schedules as the start for the simulation in our paper. The optimization was performed 100 simulation periods and each virtual farmer adjusted the rotation schedule based on the profit-experience of the previous simulations until the optimal schedule was determined (Fig.…”

Section: Experiments I: Optimization Without Self-adaptationmentioning

confidence: 99%

Designing price-contingent vegetable rotation schedules using agent-based simulation

Rodrı́guez

Wang

et al. 2018

Journal of Integrative Agriculture

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Chinese vegetable production cooperatives supply their members, mostly smallholder farmers, with a rotation schedule for the year. Since vegetable prices are not stable throughout the year, designing a rotation schedule that maximizes expected profits, distributes farmers' profits more equitably, maintains the diversity of produce in the market, and reduces the risk of pests and diseases, requires adaptive, price-contingent rotation schedules (here, called "self-adaptive adjustment"). This study uses an agent-based simulation (ABS) to design self-adaptive rotation schedules that deliver these aims. The selfadaptive adjustment strategy was more profitable for farmers when faced with price volatility, and more equitable as well. This work provides a decision-support tool for managers of Chinese vegetable production cooperatives to provide farmers with more profitable and equitable rotation schedules.

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Section: Experiments I: Optimization Without Self-adaptationmentioning

confidence: 99%

Designing price-contingent vegetable rotation schedules using agent-based simulation

Rodrı́guez

Wang

et al. 2018

Journal of Integrative Agriculture

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“…ABM is also widely employed to study qualitative variables that are not directly observed and/or difficult to measure empirically. For example, Kawakubo, Kiyoshi, and Shinobu () propose an artificial market model for derivatives, Li and Li () introduce an ABM framework for international marketing planning, and Boyer, Brorsen, and Fain () use ABM for comparing private‐value auctions and posted‐price markets. In the specific field of innovation, we could mention the agent‐based models developed in: (1) Oldham () to study industrial dynamics with innovator and imitator competitors; (2) Long and Li () to analyse intra‐ and interorganization innovation networks; and (3) Rixen and Weigand () to evaluate different policies for the diffusion of an innovation.…”

Section: Introductionmentioning

confidence: 99%

How information and communication technology affects decision‐making on innovation diffusion: An agent‐based modelling approach

Fernández-Márquez

Vázquez

2018

Intell Sys Acc Fin Mgmt

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We introduce a computational agent-based model of innovation diffusion that allows us to analyse the influence of information and communication technology (ICT) development on decision-making. Model dynamics are based on local emulation between pairs of individuals that generate an evolving social network on which an innovation is virally spread (by word of mouth). Results suggest that ICT development affects the data usefulness for decision-making by changing the topology of the social network (the means whereby the innovation is propagated). Paradoxically, a higher level of ICT development (providing a larger volume of data) narrows the differences between better and worse launch strategies, thus reducing data-driven decision-making usefulness, which then shows diminishing returns on the ICT level.

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Alternative Policy Responses to Increased Use of Formula Pricing

Brorsen

Fain

Maples

2017

Journal of Agricultural &Amp; Food Industrial Organization

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AbstractThis article determines the potential effects of policies to address concerns about lower producer prices due to increased use of marketing agreements. Policies considered are banning alternative marketing agreements, compensating producers who sell on the cash market, and restricting the quantity of marketing agreements. We use an agent-based model in a common-value auction framework to analyze these policies. The common-value auction framework is used because it closely resembles how livestock are actually purchased. The agent-based model is used to find the common-value auction equilibrium. A ban on marketing agreements reduces social welfare and the other policy interventions have little effect on prices. Past theoretical studies predict marketing agreements will cause large reductions in prices paid to producers. Conversely, empirical studies show slight effects. This article offers an alternative theory that more closely matches livestock markets and our results reduce the gap between theoretical and empirical research. The common-value auction model predicts negative effects on producer prices close to those found in past empirical research.

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Private‐Value Auction Versus Posted‐Price Selling: An Agent‐Based Model Approach

Cited by 3 publications

References 28 publications

Designing price-contingent vegetable rotation schedules using agent-based simulation

Designing price-contingent vegetable rotation schedules using agent-based simulation

How information and communication technology affects decision‐making on innovation diffusion: An agent‐based modelling approach

Alternative Policy Responses to Increased Use of Formula Pricing

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