From the inverse demand equation


 S= aPjb
 -b QJ.


Re-writing the flexibility formula, solving for bji gives

 PA




The parameter -1p, and the variables PO and Qj, are known, so that an estimate of b. can be

computed. This value can be substituted into

 =ajL = Ppn + bjnQjon

to provide an estimate of aj,. In this fashion, a system of inverse linear demand equations were

derived and were used as the demand structure for the model.


Transportation Costs

 Post harvest costs for Mexico include all charges incurred to place the product across the

U.S.-Mexico border at Nogales, Arizona. In Florida, Wildwood, Florida which is located at

the intersection of Interstate 75 and the Florida Turnpike, was selected as the transshipment point

for Florida produce.4 Using the software Automap, the distances between each supply point

and each demand point were computed. These figures are shown in Table E.6.

 An estimate of $1.3072 per mile was used as the transportation cost of a fully loaded

refrigerated truck carrying 40,000 pounds of product (Van Sickle, et al., 1994). This figure was


 4For peppers produced in Texas, McAllen, Texas is the supply point. The supply point for
California strawberries is Santa Barbara, California.

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