Farmer action analysis of cut flower seedlings under imperfect quality information
2000
Sajiki, T. (Hokkaido Univ., Sapporo (Japan))
This paper analyses the key factors in the trade of cut flower seedlings under imperfect information. This paper also analyses why common grading is superior to self-grading. Due to large amounts of information, the companies trading the seedlings show opportunistic behavior, while the two gradings react differently. The common grading system is superior to the self-grading system, due to economies of scale and the sharing of knowledge. In the common grading system, a variety in a producer's experiences would not affect the purchasing behavior. Farmers of Tobetu-cho have been trading with single seedling companies, under common grading, while in Tsukigata-cho, every farmer has been trading individually under self-grading. The number of the seedling companies to which a farmer in Tsukigata-cho trades increases as the farmer's experiences accumulate
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