Comments on: Dairy Auction http://www.progressiveturmoil.com/2009/08/10/dairy-auction/ it's all around us Mon, 09 Nov 2009 06:21:30 +0000 hourly 1 http://wordpress.org/?v=3.0 By: Dairy Auction « Progressive Turmoil http://www.progressiveturmoil.com/2009/08/10/dairy-auction/comment-page-1/#comment-266 Dairy Auction « Progressive Turmoil Fri, 09 Oct 2009 11:47:30 +0000 http://www.progressiveturmoil.com/?p=117#comment-266 [...] Commodity auctions are pretty straight-forward. They are not like a spectrum auction , where the value I attach to one chunk can depend on what other chunks I own. You’d have to be pretty incompetent to screw up the design of a commodity …Next Page [...] [...] Commodity auctions are pretty straight-forward. They are not like a spectrum auction , where the value I attach to one chunk can depend on what other chunks I own. You’d have to be pretty incompetent to screw up the design of a commodity …Next Page [...]

]]> By: Special Blog to All » Dairy Auction « Progressive Turmoil http://www.progressiveturmoil.com/2009/08/10/dairy-auction/comment-page-1/#comment-24 Special Blog to All » Dairy Auction « Progressive Turmoil Mon, 10 Aug 2009 06:13:47 +0000 http://www.progressiveturmoil.com/?p=117#comment-24 [...] here to see the original: Dairy Auction « Progressive Turmoil This entry is filed under auction. You can follow any responses to this entry through the RSS 2.0 [...] [...] here to see the original: Dairy Auction « Progressive Turmoil This entry is filed under auction. You can follow any responses to this entry through the RSS 2.0 [...]

]]> By: steven http://www.progressiveturmoil.com/2009/08/10/dairy-auction/comment-page-1/#comment-23 steven Mon, 10 Aug 2009 05:34:35 +0000 http://www.progressiveturmoil.com/?p=117#comment-23 is it possible that FF percieve some form of tacit collusion is occurring when Fonterra and others post prices? whereas running an auction removes or reduces that collusion and brings the market closer to perfect competition. Therefore by announcing higher prices Fonterra can influence the posted prices of its competitors and they all make more $, OR running an auction signals lower prices to competitors bringing prices closer to true costs and perfect competition. is it possible that FF percieve some form of tacit collusion is occurring when Fonterra and others post prices? whereas running an auction removes or reduces that collusion and brings the market closer to perfect competition.

Therefore by announcing higher prices Fonterra can influence the posted prices of its competitors and they all make more $, OR running an auction signals lower prices to competitors bringing prices closer to true costs and perfect competition.

]]> By: aaron http://www.progressiveturmoil.com/2009/08/10/dairy-auction/comment-page-1/#comment-22 aaron Mon, 10 Aug 2009 04:42:54 +0000 http://www.progressiveturmoil.com/?p=117#comment-22 It would also be interesting to compare with whatever process FF thinks would work better. I don't know the structure of the market well but an auction can achieve greater revenue than price-posting if there are many buyers competing. Revenues could have been even lower if an auction was not used. It would also be interesting to compare with whatever process FF thinks would work better. I don’t know the structure of the market well but an auction can achieve greater revenue than price-posting if there are many buyers competing. Revenues could have been even lower if an auction was not used.

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