Research

[Abstract] We estimate the degree of spatial differentiation–primarily driven by transportation costs–among downstream firms that buy corn from upstream farmers and examine whether such differentiation softens competition enabling buyers to exert market power (defined as the ability to pay a price for corn that is below its marginal value product net of processing cost). We estimate a structural model of spatial competition using corn procurement data from the U.S. state of Indiana from 2004 to 2014. We adopt a strategy that allows us to estimate firm-level structural parameters while using aggregate data. Our results return a transportation cost of 0.5 cents per bushel per mile (10% of the corn price under average conditions), which provides evidence of spatial differentiation among buyers. The estimated average markdown is $0.67 per bushel (13% of the average corn price in the sample), of which $0.49 is explained by spatial differentiation and the rest by the fact that firms operated under binding capacity constraints. Finally, we evaluate the effect of hypothetical mergers on input markets and farm surplus. A merger between nearby ethanol producers eases competition, increases markdowns by 18%, and triggers a sizable reduction in farm surplus. In contrast, a merger between distant buyers has negligible effects on competition and markdowns.

[Abstract] Higher education institutions are facing challenges in navigating social, cultural, and political issues. The online presence of higher education presents a new set of opportunities and challenges; knowledge, news, and continuing education are increasingly disseminated online. Additionally, the public, student bodies and stakeholders are increasingly looking at reviews or seeking opinions via online and social media to form opinions on institutions. This analysis uses online and social media to analyze and compare perceptions of two public universities in Indiana, namely Purdue University and Indiana University. These two Indiana institutions are located in the same state, allowing for comparisons of public perceptions and reactions to different collegiate events for two institutions facing similar ‘local environments’ politically, socially, and environmentally. The 2018—2021 study period allows for comparisons of volume and sentiment of online and social media about two universities during the most disruptive period of COVID-19. Deeper understanding of public perceptions of these institutions may facilitate effective communication and/or assist with decision making regarding the societal roles of institutions of higher education.

[Abstract] The public is paying increased attention to the environmental impacts associated with cattle production systems in the US. Thus, cattle producers are increasingly exploring ways to communicate their efforts to reduce those environmental and climate impacts. This study uses online and social media data from 2018-2022 to examine public interest in and sentiment about beef and dairy cattle production when discussed within the context of greenhouse gas (GHG) emissions. Variation in mentions and net sentiment over the reporting period is quantified and analyzed. Over the period of data collection, which was interrupted by the COVID-19 pandemic, we find that consumers became increasingly aware of cattle production’s role in GHG emissions and the relationship between emissions and climate change. We also find that consumers have become increasingly interested in emissions mitigation strategies and sustainable practices employed in the production of beef and dairy products.

[Abstract] Food delivery applications have grown rapidly in recent years, fueled by increasing consumer demand for convenience and prepared foods. Previous studies on what factors encourage consumers to use delivery platforms rely largely on survey data, likely due to the lack of availability of restaurant or industry level data. Utilizing web-scraping techniques to collect restaurant level data from one of the biggest delivery applications in South Korea, Yogiyo, this study conducts an analysis on spatial market structure of the restaurant business. Through restaurant level data, market expansion, changes in the number of restaurants to order from, and changes in prices across regions with delivery application are considered. Analysis suggests that the average number of orderable restaurants increased from a nearby 2.3 restaurants to distant 13.5 restaurants with customers willingly paying for delivery fees according to distance via the delivery application. As the restaurant delivery market becomes spatially more competitive with an additional 13.5 restaurants, it is found that aggregate prices totaled with food prices and delivery fees from two restaurants in different locations converge to serve the customers between the two restaurants. In addition, the increased degree of competition due to increased number of restaurants leads the aggregate prices to decrease by between 5.13 and 7.56%, depending on regional characteristics. 

[Abstract] Attention to big data analytics is ubiquitous and growing given the online shopping revolution and its potential to generate individual-specific actionable datasets which were previously unavailable or cumbersome to cultivate. However, the food industry has not drawn much attention to discussions of individualized pricing strategies using online grocery datasets. Considering growth of the online grocery market and consumers data abundance to grocers, this brief viewpoint article focuses on potentials of incorporating big data analytics into pricing strategies in online grocery markets. This discussion informs of various practices of big data analytics and ultimately calls to attention the potential for personalized pricing in online food markets. This article proposes the need for empirical analysis and developing research agendas investigating impacts of personalized pricing on market efficiencies, which is not as unambiguous in practices as it is theoretically. In addition, the status of online groceries, concepts of price differentiation, societal, economic, and regulatory implications of personalized pricing are discussed.

[Abstract] This study examines impacts of COVID-19 on preferences for and changes in grocery shopping methods. Fifty-five percent of respondents indicated they would not continue online grocery shopping in the coming year. However, analyses suggest those who initiated online grocery shopping during the pandemic are more likely to shop online in the future. Age, income, education level, money spent grocery shopping online, and previous online grocery shopping behavior were statistically significant in the model of future intentions to shop online. This work provides an understanding of drivers of online grocery shopping, which is of interest to retailers and policy makers. 

[Abstract] Pollinators play an important role in agriculture, food security, and ecosystems. They are facing serious population declines in the US as well as around the world, leading to concerns regarding natural fertilization, reduced crop yields, and economic threats to farmers and/or related agricultural businesses. Governments and non-governmental organizations have introduced policies and programs to conserve pollinators and increase public awareness of pollinator decline. This study focuses on online and social media content about pollinators as a proxy for public interest, measured by volume and sentiment of media. Additionally, we evaluate potential links between public interest and the reaction of markets of pollinator-derived products, namely honey. Volume and sentiment of online media surrounding pollinators was quantified for the years 2017 – 2021. Search results show mentions mostly driven by pleasant mentions of bees, honey, honeybee costumes, and butterfly migration rather than topics related to the pollination-related threats, causes, polices, and/or programs. Wholesale and retail prices of honey have been less variable than mentions over time, suggesting no apparent relationship between volume of online media activities surrounding pollinators (including bees) and honey prices. The low volume of mentions about threats towards pollinators may suggest a low level of public awareness of the topic and yield concerns for the effectiveness of polices for protecting pollinators and/or concern for economics of beekeepers, even with the active legislations of the US federal and states government for promoting pollinators health. 

[Abstract] The shortages of baby formula in the US resulting from the voluntary recall of contaminated products and shutdown of manufacturing facility in February led to increases in the national out-of-stock rate of the baby formula from 18 to 70% over the summer of 2022. This study utilizes social media listening and data analysis to examine how online media reactions to the physical shortage changed over time and how the reaction to the shortage differed from to the initial recall announcements. Improved understanding of reactions to emergent issues in foods through this lens may improve communication efficiency to mitigate potential consequences. 

[Abstract] We estimate the degree of spatial differentiation–primarily driven by transportation costs–among downstream firms that buy corn from upstream farmers and examine whether such differentiation softens competition enabling buyers to exert market power (defined as the ability to pay a price for corn that is below its marginal value product net of processing cost). We estimate a structural model of spatial competition using corn procurement data from the U.S. state of Indiana from 2004 to 2014. We adopt a strategy that allows us to estimate firm-level structural parameters while using aggregate data. Our results return a transportation cost of 0.5 cents per bushel per mile (10% of the corn price under average conditions), which provides evidence of spatial differentiation among buyers. The estimated average markdown is $0.67 per bushel (13% of the average corn price in the sample), of which $0.49 is explained by spatial differentiation and the rest by the fact that firms operated under binding capacity constraints. Finally, we evaluate the effect of hypothetical mergers on input markets and farm surplus. A merger between nearby ethanol producers eases competition, increases markdowns by 18%, and triggers a sizable reduction in farm surplus. In contrast, a merger between distant buyers has negligible effects on competition and markdowns.

[Abstract] Interest in local food has been growing, driven by increased attention from consumers, supporting policies, and interest in offering supply by local producers. Nonetheless, a definition of “local food” remains elusive, varying with purposes, geographies, and perceptions. This study quantifies online media mentioning local food in 2018–2021 using online and social media listening and analytics. In addition, a sub-search devoted to local food security and access was conducted due to a high proportion of mentions devoted to food security in the initial search. Variations in mentions and net sentiment quantified for individual US states are also presented. The local food pantry sub-search arose after finding a large share of the general local food media was referencing local food access rather than production or other topics. The interest in local food access was more apparent during crises periods, such as the COVID-19 pandemic, during which even a larger portion of mentions are devoted to the local food pantry sub-search topic. Mentions quantified from the sub-search are mostly expressing concerns about worsened food insecurity during the pandemic and encouraging others to do things like donate food to local pantries. Online and social media can play an important role towards active communication in local communities on topics, such as food availability and access. In addition, online media can facilitate more efficient emergency management.

[Abstract] Increasing prevalence and scale of natural disasters fuel the need for new approaches to evaluating, and eventually mitigating, their impact. This analysis quantifies and compares online and social media attention to hurricanes and wildfires over time and geographic space. Hurricanes studied included: Michael, Maria, Irma, Harvey, and Florence. Fires studied included: Woolsey, Mendocino, Carr, and Camp. It was hypothesized that total volume of online media content, measured in posts and mentions, varied measurably over the phases of the disasters. Furthermore, it was hypothesized that the anatomy of the disaster, specifically the number and timing/dates, of posts and mentions varied inside versus outside impacted zones/geographies. Social media content, in sheer volume, related to hurricanes was larger than that devoted to fires. A mismatch between the time periods that people post about natural disasters on social media and the times when aid is needed to rebuild was found. Mentions fell rapidly after landfall for hurricanes, and long before fires were officially contained or extinguished. This rapid fall in media attention may leave directly impacted populations without help and support during the rebuilding process. Greater understanding of volume of posts over time, or the anatomy of disasters in online media space, may help government agencies, private industry, and relief organizations understand public attentiveness before, during, and after various types of natural disasters. 

[Abstract] In light of extended stay-at-home periods during the coronavirus disease 2019 pandemic, recent societal trends have revealed an increased use of online media to remain connected. Simultaneously, interests in at-home cooking and baking, particularly of “comfort foods” have increased. Because flour is a crucial component in many of these products, we analyze how the U.S. public, in social and online media spaces, references “flour” and its use. We also quantify the share of media mentions about flour that are devoted to flour-related food safety risks and/or risk mitigation. It was found that the volume of mentions about flour and its use fluctuate seasonally, often increasing ahead of the winter holiday season (November to December). Further, the volume of interest rapidly increased in March 2020 when stay-at-home orders were issued. The share of media devoted to flour-related food safety risks or associated illness was extremely small but generally corresponded with flour recall announcements or other public risk communications. Overall, the interest in flour and its use remains seasonal and predictably related to societal trends, such as increased baking at home during the holidays or 2020 stay-at-home orders. However, awareness of flour-related food safety risks seems largely absent on the basis of online media data collection and analysis, except in immediate reactions to flour recalls. This study suggests that more flour safety education programs may be desired to support consumers' informed decision making.

[Abstract] Recall announcements by the U.S. Food and Drug Administration (FDA) and Food Safety and Inspection Service (FSIS) are important communication tools. Nonetheless, previous studies revealed that the effects of recalls on consumer demand are small. Social media analytics can provide insights into public awareness of food safety–related incidents. This study included social listening data to analyze how the public, in social and online media spaces, responds to, interacts with, and references food safety recalls and/or initial announcements of foodborne illness outbreaks as reported by the Centers for Disease Control and Prevention (CDC). Analysis results suggest that mentions quantified in the social and online media searches moved closer in step with the CDC's initial reports of foodborne illness outbreaks than did FDA and FSIS recall announcements. Issuance of recalls may not be a popular source of food risk information in the social media space compared with reactions to the CDC's initial illness reports. This relative popularity reflects people more often sharing or posting about illness risk regardless of whether a recall occurs, suggesting that recall announcements by the FDA and FSIS may not induce changes in consumers' behavior, whereas initial illness reports by the CDC may. Although recalls by the FDA and FSIS may not generate social media posts, their primary role is to take potentially unsafe food items off grocery shelves. Online media analytics provide policy makers with information to guide effective food risk communication; initial CDC reports drive immediate attention more than do FDA and FSIS recalls. 

[Abstract] This study models fundamental features of current and prospective policies encouraging adoption of residential photovoltaic (PV) systems. A key finding is that time-of-day (ToD) pricing can enhance or worsen the economics of PV systems. Moreover, increased responsiveness of electricity demand to its price diminishes the effectiveness of ToD pricing in the absence of net metering, but does not affect it otherwise. An application to plausible conditions in the State of Indiana, USA, shows that current policies are unlikely to trigger adoption by a risk-neutral forward-looking residential customer. However, adoption of PV systems can be induced if the Federal Tax Credit is increased to cover 48% of capital cost (instead of the current 30%), which could imply a cost to the Federal Government of about $0.95/kW of installed capacity depending on the panel’s size. We demonstrate that implementation of ToD pricing can trigger adoption under a range of on- and off-peak price combinations. But our analysis also shows that the cost-effectiveness of ToD pricing is enhanced at higher ratios of on-peak to off-peak prices. 

[Abstract] In recent years, the energy market in the US and globally is expanding the production of renewable energy. Solar energy for electricity is also expanding in the US. Indiana is one of the states expanding solar energy with solar photovoltaic (PV) systems. Therefore, we conduct benefit cost analysis with several uncertain input variables to determine the economics of adopting solar PV systems in Indiana based on policy instruments that could increase adoption of solar PV systems. The specific objectives are analyses of the cost distribution of solar PV systems compared with grid electricity in homes and estimating the probability that solar can be cheaper than electricity from grids under different policy combinations. We first do the analysis under current policy and then the analysis under potential policy options for a variety of scenarios. Also, the results inform government policy makers on how effective the alternative policies for encouraging solar PV systems are. The results show that current policies are important in reducing the cost of solar PV systems. However, with current policies, there is only 50–50 chance of solar being cheaper than electricity from grids. If potential policies are implemented, solar PV systems can be more economical than grid electricity. 

[Abstract] We estimate the impact of new ethanol plant entries on local corn prices in Indiana, accounting for treatment intensity by considering both the presence and size of the plant relative to local corn supply. We also examine whether price effects dissipate with distance from the plant and whether this attenuation adheres to a spatial pattern suggestive of spatial price discrimination. We leverage spatially explicit corn price data from before and after the 2006–2012 ethanol plant expansion period to estimate multiple difference-in-difference models, addressing endogeneity in plant location. Our results show that entries of ethanol plants are associated with increases in local corn prices by an average of 7 cents per bushel at the plant site. The effect scales with plant size, ranging from 3 cents per bushel for the smallest entrant to 30 cents per bushel for the largest. Price effects also weaken with distance, dissipating at 13 miles for the smallest plants, 67 miles for average-sized plants, and 141 miles for the largest. However, we find no evidence of spatial price discrimination.

[Abstract] Increasingly sophisticated pricing strategies are becoming prevalent in the food service industry, as well as other industries, as highly disaggregate level of data on consumers become available. As it is well known that burger prices of fast-food franchises vary across geographies, this study further examines McDonald’s spatial price differentiation in a finer geographical level around the US Land Grant University (LGU) campuses, utilizing store level data web-scraped from UberEATS. Analysis shows that 1) McDonald’s sandwich meal prices decrease by 3 to 7 cents as McDonald’s restaurants sit 1 mile away from the US LGUs and 2) the prices increase by 7 to 10 cents as its distance from Burger King restaurant increases by a mile. The results support the hypotheses that 1) McDonald’s might segment its market spatially by charging differentiated prices at a finely disaggregate geographical level and 2) it might perceive its competitor’s menu items as substitutes. Furthermore, such declining price gradients with distance from the campuses are non-linear for some sandwich meals until the distance becomes 2 miles and then rebounds, increasing until it reaches 4 miles. On the other hand, the pattern of the price rising with distance from its competing restaurants increasing is consistently linear. 

[Abstract] Social media expressions of perception of seafood play an important role in consumers’ food purchase decisions, but remains underexplored. This study examined online and social media data, including volume of mentions, net sentiment, top terms and hashtags, and other online media data related to seafood (fish and shellfish) from January 2019 to December 2022. The results indicate that the volume of media and net sentiment related to seafood fluctuates over time and across categories of seafood. Net sentiments for seafood overall, and for the seafood categories studied, remained in the 40% to 50% range in most regions of the U.S. though there are temporal negative movements driven by negative online expressions, particularly for farmed fish. However, an increasing trend in net sentiment for farmed fish compared to other seafood categories suggests continuing social acceptance of farmed fish. The overall positive sentiment is consistent with increasing seafood consumption in the U.S.

[Abstract] With consumers’ growing demand forproducts labeled as having been produced without practices orsubstances, agriculturalproducersare giventhe chance to distinguish their products through eco-labelsand otherclaims. During the last few decades, a number of food labels have been developed tocommunicate sustainability information, with consumers especially interested in the carbon footprintof agriculture in recent years.This study investigates theretailpremiumsfor labeling ofgreenhousegas (GHG) emission-reducingpractices and otherpotentially relevant labels on meat products,including organic, grass-fed, gluten-free, and whethergenetically modified organisms were used inproduction. Prices and labeling information about beef, pork,andchicken products in selected storesfrom 48 states were collected via web-scraping and investigated foreco-labels and otherclaims.Market-observed premiums for reduced-GHGlabels or using sustainable practices were investigatedalongside impacts ofgeography on product prices.Our results showed significant premiums for almostall claims investigated. For beef and chicken products theclaimwith the highestassociatedpremiumwasthe reduced greenhouse gas, or carbon footprint, label.The reduced greenhouse gas label was notavailable in the market for pork products;insteadtheNon-GMOclaimwas associated with the highestpremium of those studied. 

[Abstract] As Working-From-Home (WFH) practices expanded rapidly to limit viral spread during the COVID-19 pandemic and continued into the pandemic recovery period, most debates over WFH turned towards discussing productivity rather than the reasons for WFH or flexibility. This study investigates why individuals value WFH/hybrid work arrangements. Understanding why individuals desire WFH or hybrid work arrangements can facilitate constructive and effective negotiations and yield better solutions for employers, such as an increase in productivity, as well as facilitating work-life balance or the incorporation of caregiving or other priorities for employees. Reasons that employees desire WFH or flexible work location arrangements are heterogenous; while the majority of the public debate has focused on whether or not employers should or should not allow WFH the numerous and varying reasons for desiring flexibility have been largely overlooked.  Using data from a nationally representative online survey conducted in late 2021, a best-worst scaling experiment was used to elicited rank ordered motivations for remote work. Results reveal the most valued reason for WFH is balancing work with caregiving responsibilities, followed by reducing commuting time and costs, limiting exposure to illness, and preferring the home environment. A latent class model identifies four unobserved heterogeneous preference segments of respondents, namely groups focused on caregiving and commuting, productivity and comfort, multitasking with health safety, and a diffuse group with no strong top reason for WFH flexibility. Additionally, seemingly unrelated regression analysis links WFH preferences with behavioral changes in grooming, attire, and personal care. These findings offer nuanced insights into employee priorities, guiding organizations in designing flexible work policies that align productivity goals with employee well-being.