cobweb theory - market failure in agricultural markets

[baseboyy]

great explanation, thank you!

[mangoswiss]

CAP? Really? When you have high frequency oscillations that you want to suppress with a control system you should apply a low pass filter. That's why you have a futures market. Is an economics teacher really supporting a programme of import tariffs and minimum pricing? Only in Athens!

[Shahnamh]

i had been looking at diagrams in the text books for quite long but couldn't even understand a single word. Even my teacher skipped this.. But thank you so so much, your explanation has made me more confident to take the Alevel paper on 7th.. :)

[methadon2000]

Please come and teach at my school! My economics teacher is only in his early twenties and cannot teach to save his life!

[123conundrum]

You make economics fun.

[liverpoool4lyf]

I really understand the theory! thanks 

[nppt1210]

Please come to Bellerbys in Cambridge !!!! You are a great teacher! My macro seems to be worse :((

[monkeybus4uk]

cheers for the videos :) 

[selfrealizedexile]

perfect, only that they approach an equilibrium (perfection), but often don't reach it as market conditions change constantly.

Wow, sir. Why on earth would you relegate the task of "stabilizing" agricultural commodities to a gov't? Do you not know the history of the Great Depression and the US gov't's blatant failure to stabilize agricultural prices and the further instability in prices that resulted?

[Screwschom]

@selfrealizedexile in economics a "government" does not mean the "US Goverment".

[selfrealizedexile]

You're a fool if you think there's a difference between each nation's gov'ts. The failure is the institution itself, not necessarily what nation presides over the failure. Gov't cannot comprehend the price system, period. Not the US gov't, not the Greek Gov't, not the China gov't, and on and on.

[selfrealizedexile]

You know what's funny is speculators stabilize commodities actually. All gov't attempts to "stabilize" commodities have resulted in more instability.

All producers produce with this kind of lack of a guarantee that previous prices may not indicate that demand will be as high next go around. Most will simply go by statistical analysis of the history, with a focus on recent history, to determine how much of a good to produce. When people say markets are efficient, they don't say they're

[tothatextent]

I like the way you make concepts easy to understand. You are helping out so many people. Thank-you!

[zx6rtt]

i read through about 20 pages trying to figure out cobweb theory and couldn't understand it until i saw this video.

THANK YOU SO MUCH

[RichardGirtin]

Brilliant explanation! I wonder if the model could be applied to other, non-agricultural markets, though?

[CuteChadz]

I love this guy he helps sooo much with revision!

[DoNePa]

no. Thank YOU

[MillionthUsername]

How does price fixing "stabilize" markets? Is there an all-knowing fat bureaucrat stuck in a cubicle somewhere who knows the "correct" price for carrots in any given year and can thus tell the farmer how many to plant? How did he come by this knowledge?

Or maybe this policy you speak of is a subsidy? In that case, you have a gang steal money from others in order to give it to farmers. But that just hurts others.

The futures market can help farmers lock in a good price. Didn't you know that?

[derangedrabbits]

i don't get it. if the farmers know that by producing at Q1, they can sell at a higher price, why don't they just work only to provide enough for Q1 or lesser and still get paid the same amount as working at other higher quantities? this helps them save time and effort, then they can earn more money by doing other jobs too?

[PIGGYMAN918]

i would think this theory is so much same as the IS-LM model. The way to adjust back to equilibrium is same in these two model, whirlpool. If the process mentioned continues to infinity, they will reach the equilibrium finally. and that's about econometrics !

[vuk1990]

No guesses who's doing the european paper 2888 tomorrow *cough fentonator*

;)

So am I.

[sexdrugsRnR]

i dont get how this problem can be stabilized

[fentonator]

by schemes such the buffer stock scheme.

[ITDXB]

no shit

[liverpoool4lyf]

@ITDXB Jake?

[gogosimonadebisi]

I personally agree with whatsyourstyle99, this man truely does not know the heart of the cob. YOUR AN AYYYYYED

[whatsyourstyle99]

- said the Cobweb of war, fear and terrible uncertainty, this is not a laugh but a lurch, a healy but a wheely bin, turt, frasers balls, you suck you dirty fraser OH MUM MI BALLLLS

[whatsyourstyle99]

I know you think you know your Cobweb Theory, but there truely isnt enough information on the Cob it/himself. He is the king of the Theory, with what lies above also lies below - Agricultural Cobweb is an economic fabrication of the flatuation on a downhill democracy for peace and healy, the dissalution of a varticuticle sickness is the apparent knowledge of the all powerful Cobweb and his unique followers, because im going to ram it into your stomach and break your goddamn spine! -

[whatsyourstyle99]

I know the Cobweb Theory shows up in Module 6 of the Cobweb Conundrum. This is a type of Cobweb that pokes its head out of the ground and softly shouts "COBWEB". The Cobweb is a unique specimen, I think your take on the theory is good but doesnt show the traits of Cob enough - for example, the Trademark Burp - this, during harvest time, is especially valuable. Actually changed my mind, your Cobweb is a bit dated, stabilising markets and agricultural crisis means nothing, Cobweb is an ayed

[xerozania]

for examples prices might fall 2 seasons in a row and perhaps increase in the next. please clarify. thanks a lot and good job on the videos!

[xerozania]

Hi, this is Nicholas, a student doing the A Levels in Singapore. As far as i gathered this seems to be an alternative explanation to the primary product problem that primary producers face. Wouldn't the fluctuating short term supply coupled with the unexpected changes in demand be a better explanation for the large degrees of fluctuation? Not to mention that prices and output would not necessarily oscillate as presented by the cobweb model

[swag909]

it looks to me like the system is sorting its self out i would be interested n seeing a diverging example but for what you have shown i think that government involvement would be a bad step to take.

[U1u]

Thank you so much, It made Cobweb so much clearer, Now I can read in to it more knowing the base.

[igertiger]

please come to teach at nottingham high school. your presentations are so easy to follow and make it all seem so simple. you can come here and replace this complete idiot that looks like ricky gervais and people may start getting good grades for a change.

[pajholden]

are you the headteacher? that would be funny!

[reemanaran]

lol.. my economics teachers admire u. make us look at ur videos when we're really suppose to b tought by them. im pretty sure that even my headteacher would make u head of dpt of eco if u actually wrked at my school!

[sherikman]

thank you

your presentations are really useful!

can you put some more presentations regarding

international finance.

[sherikman]

thank you

your presentations are really useful!

can you put some more presentations regarding

international finance.

[sherikman]

thank you

your presentations are really useful!

can you put some more presentations regarding

international finance.

[sherikman]

thank you

your presentations are really useful!

can you put some more presentations regarding

international finance.

[ALPendulum]

nice explanation!

[teleskobikcatal]

Thank you for the video! It is very helpful!

..and now that I can understand the pain of farmers :)