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Role for Agent of NORTHEAST WILDLIFE FEDERATION You work for the…
Role for Agent of NORTHEAST WILDLIFE FEDERATION You work for the Northeast Wildlife Federation, a non-profit environmental organization that is dedicated to restoring biodiversity in areas where human interference has altered the balance of nature. Your current objective is to buy 20,000 pheasants eggs, one fifth of the 100,000 pheasant eggs available on the world market this year. Your organization wants to incubate the eggs and release the young birds in three areas: the Adirondack National Forest of upstate New York, the Green Mountain National Forest of Vermont, and the White Mountain National Forest in New Hampshire. Pheasant populations have been severely depleted in these northeast forests due to “sport” hunting and trapping (blood sports are considered sadistic pathologies, like child abuse and spousal abuse, as far as your organization is concerned). You have received a grant from E.I. Lily (a large pharmaceutical corporation) that will fund this program. You need no less nor no more than 20,000 eggs. Any less than that number will not give you the critical mass and gene pool diversity necessary to build self-sustaining populations in the Northeast; any more will exceed the capacity of your largely volunteer group to incubate the eggs and transport the young birds to release sites; furthermore, the habitat may not be able to support a sudden influx of more than 20,000 pheasants. 400,000 pheasant eggs are produced each spring on breeding farms, and are sold through two markets, a contract market and a spot market. The contract market, which accounts for 300,000 eggs per year, supplies restaurants in East Asia (where pheasants’ eggs are served as an expensive delicacy) and farms in the U.S. and in Europe (where pheasants are raised like chickens for their meat). The contract market eggs are not available to the Northeast Wildlife Federation, or any other spot market buyers. The spot market is a mechanism for disposing of the remaining eggs in the season’s supply (unlike chickens, which lay eggs every day, pheasants only produce one clutch of 12-16 eggs every year); in most years, much of this residual supply has to be sold off, typically to be blended into high-nutrition, specialty pet food prescribed by veterinarians. A commodity broker owns all of the surplus eggs. You do not know what this individual paid, but you know that the average contract price was $1.00 per egg, and that the broker probably paid much less for the surplus. You have very limited funds, and therefore would like to buy the eggs as cheaply as possible. The grant authorizes you to pay an absolute maximum of $3.00 (per egg), but you would like to buy the eggs for less than $0.50 each because this will allow you to spend more money on the release programs, making sure the birds are widely distributed throughout the three national forests. Following the tradition of this industry, the commodity broker publicly announced the availability of these 100,000 eggs and potential buyers are meeting with the broker in a hotel room opposite the Chicago Commodity Exchange. The pet food buyers will be expecting to pay cents-on-thedollar prices, so you do not anticipate any serious competition in securing the supply you need. Nevertheless, you must not buy more or less than 20,000 eggs nor pay more than $3.00 per egg. If you cannot buy the full 20,000 eggs this year, or would have to pay more than $3.00 per egg, you should buy none at all; the grant will allow you to try again on next year’s contract or spot market.
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