Strategic Behavior, Institutional Change, and the Future of Agriculture

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1998-09-01
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Johnson, Stanley
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Center for Agricultural and Rural Development

The Center for Agricultural and Rural Development (CARD) conducts innovative public policy and economic research on agricultural, environmental, and food issues. CARD uniquely combines academic excellence with engagement and anticipatory thinking to inform and benefit society.

CARD researchers develop and apply economic theory, quantitative methods, and interdisciplinary approaches to create relevant knowledge. Communication efforts target state and federal policymakers; the research community; agricultural, food, and environmental groups; individual decision-makers; and international audiences.

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Policy reforms that increase the roles of markets in agriculture and related institutional changes are occurring worldwide and are accompanied by rapid technical change. With the evolving role of government, new institutions are emerging for shaping the strategic behavior of public and private sector agents. This paper suggests that the use of game theoretic formulations, combined with modern concepts of mechanism design, offers an approach to policy analysis and the study of institutional change that is valuable to professionals involved in the economics of agriculture.

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