We will develop a mathematical model that predicts how farmers (or firms) will make decisions when choosing between two markets. The markets we will study include a wholesale market, where farmer's products are no different from all other farmers, and a farm-to-school market where the farmer's products are differentiated (the farmer is known and the products are known to be locally produced). We will then design economic experiments that could be used to test the model's theoretical results. Plans for the design will focus on determining how farmers will allocate their products among the two markets given different levels of transaction costs and market power. We will also work on the design of a preliminary experiment to determine the social preferences of the "farmers." The choices of these "farmers" will then differ according to their social preferences, the transaction costs they face in marketing their products, and the amount of market power they possess and the school possesses.
The major goals of this project will be to Investigate key factors that influence economic performance and viability of mid-scale farms/ranches and their supply-chain
partners and to Identify and assess the possibilities of mid-scale supply chains to contribute to community goals and needs.