can spot and contract markets co-exist in agriculture.pdf

Can Spot and Contract Markets Co-Exist in Agriculture? Miguel Carriquiry and Bruce A. Babcock Working Paper 02-WP 311 April 2004 (Revised) Center for Agricultural and Rural Development Iowa State University Ames, Iowa 50011-1070 Miguel Carriquiry is a graduate assistant at the Center for Agricultural and Rural Development, and Bruce A. Babcock is a professor of economics, Iowa State University, and director of the Center for Agricultural and Rural Development. Paper presented at Economics of Contracts in Agriculture workshop, July 21-23, 2002, Annapolis, Maryland. This publication is available online on the CARD website: . Permission is granted to reproduce this information with appropriate attribution to the authors and the Center for Agricultural and Rural Development, Iowa State University, Ames, Iowa 50011-1070. For questions or comments about the contents of this paper, please contact Miguel Carriquiry, 73 Heady Hall, Iowa State University, Ames, IA 50011-1070; Ph: 515-294-8783; Fax: 515-294-6336; E-mail: miguelc@. Iowa State University does not discriminate on the basis of race, color, age, religion, national origin, sexual orientation, sex, marital status, disability, or status as a U.S. Vietnam Era Veteran. Any persons having inquiries concerning this may contact the Office of Equal Opportunity and Diversity, 1031 Wallace Road Office Building, Room 101, 515-294-7612. Abstract New production technologies, consumers who are more discriminating, and the need for improved coordination are among the forces driving the move from spot markets to contracts. Some worry that this tendency will result in the disappearance