Io Assignment

Question 2

How would you structure a campaign to provide producers with the appropriate incentives? (A)

The structure of the campaign have to take care of the interest of the different producers, in this way the campaign will have incentives for both small and large producers to invest. To Raise more incentives for smaller production, they should be granted special terms. For example smaller firms that are willing to pay for the program, can get some of the amount invested in return if the sales aren’t increasing over a t period.

There should be a voting, but in smaller groups. For example the local producers should vote and discuss in smaller groups so that their opinion will have a larger impact on the decision. The difficult question would then be: How much should every vote count, should the larger producer have a larger impact? Larger producers will contribute more to a GDP, and will probably benefit more from a campaign compared with a smaller firm. If every vote is worth the same, then we have an issue because it’s more likely that it is a higher percentage of larger producers than small ones.

The campaign should have a payment system, where different variables such as sizes of the producers, production capacity, sales and market shares are being taken into account when calculating how much each production has to pay. The benefit from the campaign will then be fair, considering that larger productions probably will gain more benefit from a higher demand, than smaller firms.

To trigger incentives for all the firms, the campaign should tailor all the advertisement to the specific productions area. Given that we are in the states, they could approach the local area or states differently. For example all the firms can vote locally over different marketing- strategies and approaches.

What should the Courts decide on the challenges by individual producers?(B)

The problem when you are an individual producer is that you will not benefit...