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Abstract

Ryan challenges agricultural economists to help overcome a number of vexed problems facing the Australian wheat industry. Previous attempts to analyse these problems have been inadequate largely because of their inability to integrate real-world market imperfections and dynamics. Accordingly, there may be considerable merit in pursuing an alternative research agenda which employs non-traditional theories, models and estimation methods. Several alternative frameworks including the sunk cost model and strategic trade policy are proposed to address the issues of single desk selling status of the Australian Wheat Board and the US Export Enhancement Program. Additional problems including product differentiation, value adding and liberalisation in importing countries are discussed prior to developing an alternative approach to estimating demand and supply elasticities.

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