| Home > American Agricultural Economics Association (AAEA) > 1984 Annual Meeting, August 5-8, Ithaca, New York > The Use of Expectations In Agricultural Supply Response |
A composite supply response model is formulated that has extrapolative and rational components as well as a partial adjustment mechanism. The model is applied to the Florida Watermelon Market to investigate how producers are forming their expectation of watermelon prices at harvest time. The results show that a dynamic cobweb mechanism is a valid representation of the data and suggests that producers are not using all the relevant information in the market.
