A Markovian model market-Akerlof`s lemons and the asymmetry of information

In this work we study an agent based model to investigate the role of asymmetric information degrees for market evolution. This model is quite simple and may be treated analytically since the consumers evaluate the quality of a certain good taking into account only the quality of the last good purchased plus her perceptive capacity beta. As a consequence, the system evolves according to a stationary Markov chain. The value of a good offered by the firms increases along with quality according to an exponent alpha, which is a measure of the technology. It incorporates all the technological capacity of the production systems such as education, scientific development and techniques that change the productivity rates. The technological level plays an important role to explain how the asymmetry of information may affect the market evolution in this model. We observe that, for high technological levels, the market can detect adverse selection. The model allows us to compute the maximum asymmetric information degree before the market collapses. Below this critical point the market evolves during a limited period of time and then dies out completely. When beta is closer to 1 (symmetric information), the market becomes more profitable for high quality goods, although high and low quality markets coexist. The maximum asymmetric information level is a consequence of an ergodicity breakdown in the process of quality evaluation. (C) 2011 Elsevier B.V. All rights reserved.

A Markovian model market-Akerlof's lemons and the asymmetry of information

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Thiabendazole uptake and persistence in lemons following postharvest dips at 50 degrees C

Thiabendazole (TBZ) uptake and degradation rate in lemon fruits, following prestorage dipping at 50 degrees C in mixtures containing different amounts of fungicide, was compared with those measured after treatment at standard room temperature. TBZ residues were strictly dependent upon the amount of fungicide. Following 1,200 ppm TBZ dipping at 20 degrees C residue uptake in fruit was the same that would have been accumulated with ca. 150 ppm fungicide at 50 degrees C, a value that can be calculated due to the linear relationship between the residue in fruit after treatment and fungicide concentration TBZ residues showed great persistence during fruit storage: after 13 weeks at 8 degrees C and 1 week at 20 degrees C residues in fruit averaged ca. 70% of their initial values. In this study it was shown that it is possible to employ remarkably low amounts of TBZ (ca. 150 mg kg(-1)), when applied in combination with water at 50 degrees C, and keep the same residues of fruit treated at room temperature with high amounts of TBZ (1,200 mg kg(-1)).

Effect of heated solutions on decay control and residues of imazalil in lemons

Freshly harvested lemons [(Citrus limon (L.) Burm)] were dipped 3 min in water with and without imazalil (IMZ) at 50, 100, and 200 ppm at 50 degrees C and at 1000 ppm IMZ at 20 degrees C. Following treatments fruit were kept at 9 degrees C and 90%-95% relative humidity (RH) for 13 weeks and an additional week at 21 degrees C and ca. 75% RH, to simulate a marketing period (SMP). No decay control was observed with fruit dipped in water at 50 degrees C. In contrast, IMZ treatments provided 90%-96% control of Penicillium rots during cold storage and SMP. Fungi other than Penicillium spp. were also found in all samples as differences among treatments were negligible. IMZ treatment caused some external damage to the fruit (peel browning), and the percentage of damaged fruit was related to the amount of active ingredient (AI) present in it. Dipping in 200 or 1000 ppm IMZ promoted off-flavor development after 10 weeks of storage, and fruit were judged to be unacceptable for consumption after 13 weeks of cold storage. After 1000 ppm IMZ dipping at 20 degrees C, residue concentration in fruit was 8.20 ppm; this value doubled that found in a previous investigation on lemons treated with comparable IMZ levels. Residue concentrations in fruit after treatment at 50 degrees C was strictly related to the amount of fungicide employed. After 13 weeks Al residues in fruit decreased to average ca. 35% of the initial values. During the 1 week SMP, residue levels decreased by a further ca. 25%. It was concluded that it is possible to achieve significant control of decay in lemons during longterm storage by dipping fruit in 50 ppm IMZ mixtures at 50 degrees C. Such treatment should be advised to remarkably reduce potential pollution in the environment due to packinghouse wastewater disposal.

A simple and rapid extraction for gas chromatographic determination of thiabendazole and imazalil residues in lemons

A rapid and efficient method is described for the determination of thiabendazole and imazalil residues in lemons (peel and pulp). The procedure is based on the extraction with an hexane:ethyl acetate mixture (1:1, v/v) and gas chromatographic analysis using thermionic specific detection (TSD). The possibility of matrix effect was also studied. Mean recoveries from 8 replicates of fortified samples ranged from 79% to 109%, with relative standard deviation values between 2.4% to 12.8%. The detection and quantification limits of the method were 0.2 mg kg-1 and 0.5 mg kg-1, respectively.

Contagious Illiquidity I: Contagion through Time

This paper is an investigation into the dynamics of asset markets with adverse selection a la Akerlof (1970). The particular question asked is: can market failure at some later date precipitate market failure at an earlier date? The answer is yes: there can be "contagious illiquidity" from the future back to the present. The mechanism works as follows. If the market is expected to break down in the future, then agents holding assets they know to be lemons (assets with low returns) will be forced to hold them for longer - they cannot quickly resell them. As a result, the effective difference in payoff between a lemon and a good asset is greater. But it is known from the static Akerlof model that the greater the payoff differential between lemons and non-lemons, the more likely is the market to break down. Hence market failure in the future is more likely to lead to market failure today. Conversely, if the market is not anticipated to break down in the future, assets can be readily sold and hence an agent discovering that his or her asset is a lemon can quickly jettison it. In effect, there is little difference in payoff between a lemon and a good asset. The logic of the static Akerlof model then runs the other way: the small payoff differential is unlikely to lead to market breakdown today. The conclusion of the paper is that the nature of today's market - liquid or illiquid - hinges critically on the nature of tomorrow's market, which in turn depends on the next day's, and so on. The tail wags the dog.

Hiring and firing costs, adverse selection and long-term unemployment

In this paper, we present a matching model with adverse selection that explains why flows into and out of unemployment are much lower in Europe compared to North America, while employment-to-employment flows are similar in the two continents. In the model,firms use discretion in terms of whom to fire and, thus, low quality workers are more likely to be dismissed than high quality workers. Moreover, as hiring and firing costs increase, firms find it more costly to hire a bad worker and, thus, they prefer to hire out of the pool of employed job seekers rather than out of the pool of the unemployed, who are more likely to turn out to be 'lemons'. We use microdata for Spain and the U.S. and find that the ratio of the job finding probability of the unemployed to the job finding probability of employed job seekers was smaller in Spain than in the U.S. Furthermore, using U.S. data, we find that the discrimination of the unemployed increased over the 1980's in those states that raised firing costs by introducing exceptions to the employment-at-will doctrine.

A Walrasian theory of commodity money: Paradoxical results

The objective of this note is to analyze some implications of the model of commodity money described in Banerjee and Maskin (1996) which may seem paradoxical. In order to do this, we incorporate a general production cost structure into the model. We focus on two different results. First, the existence of technologies that make counterfeiting a commodity more difficult may exclude it from being used as medium of exchange. Second, allocative distortions due to problems of asymmetric information may become larger in the presence of such technologies.

Physical-hydraulic properties of a sandy loam typic paleudalf soil under organic cultivation of 'montenegrina' mandarin (Citrus deliciosa Tenore)¹

Citrus plants are the most important fruit species in the world, with emphasis to oranges, mandarins and lemons. In Rio Grande do Sul, Brazil, most fruit production is found on small properties under organic cultivation. Soil compaction is one of the factors limiting production and due to the fixed row placement of this crop, compaction can arise in various manners in the interrows of the orchard. The aim of this study was to evaluate soil physical properties and water infiltration capacity in response to interrow management in an orchard of mandarin (Citrus deliciosa Tenore 'Montenegrina') under organic cultivation. Interrow management was performed through harrowing, logs in em "V", mowing, and cutting/knocking down plants with a knife roller. Soil physical properties were evaluated in the wheel tracks of the tractor (WT), between the wheel tracks (BWT), and in the area under the line projection of the canopy (CLP), with undisturbed soil samples collected in the 0.00-0.15, 0.15-0.30, 0.30-0.45, and 0.45-0.60 m layers, with four replicates. The soil water infiltration test was performed using the concentric cylinder method, with a maximum time of 90 min for each test. In general, soil analysis showed a variation in the physical-hydraulic properties of the Argissolo Vermelho-Amarelo distrófico arênico (sandy loam Typic Paleudalf) in the three sampling sites in all layers, regardless of the management procedure in the interrows. Machinery traffic leads to heterogeneity in the soil physical-hydraulic properties in the interrows of the orchard. Soil porosity and bulk density are affected especially in the wheel tracks of the tractor (WT), which causes a reduction in the constant rate of infiltration and in the accumulated infiltration of water in this sampling site. The use of the disk harrow and mower leads to greater harmful effects on the soil, which can interfere with mandarin production.

Frações de fibra em aveia e sua aplicação em programas de melhoramento

O objetivo deste trabalho foi determinar frações de fibra em genótipos de aveia e avaliar o potencial do NIRS, utilizando grãos inteiros e moídos. Grãos descascados, inteiros e moídos, dos genótipos UFRGS 7, UFRGS 14, UFRGS 17 e de 99 linhagens recombinantes F7, de UFRGS 7 x UFRGS 17, foram analisados quanto aos teores de fibras total, solúvel e insolúvel, pelo método enzimático gravimétrico. Amostras de grãos, descascados inteiros e grãos moídos, foram também analisadas pelo NIRS. Os resultados indicaram que a utilização do NIRS, para avaliação do teor de fibras a partir de grãos inteiros, é eficaz e pode ser empregada na seleção desse caráter em aveia.