DISTRIBUTION OF GAINS FROM RESEARCH AND PROMOTION IN MULTISTAGE PRODUCTION SYSTEMS - THE CASE OF THE UNITED-STATES BEEF AND PORK INDUSTRIES

A producer-financed program that leads to either an increase in retail demand from promotion or a decrease in marketing costs from research will generate returns to producers that are generally smaller than ret urns generated through an equivalent change in producer supply from re search. The distribution of gains depends on the degree of substitutib ility between farm and nonfarm inputs. Comparative statics of equal ab solute changes in demand, supply, and marketing costs in the U.S. beef and pork industries show the significance of input substitutibility f or distribution of gains, and sensitivity of the results to beef and p ork demand interrelationships.