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Registros recuperados: 78
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Collinearity in Linear Structural Models of Market Power AgEcon
Perloff, Jeffrey M.; Shen, Edward Z..
The well-known structural model used to estimate market structure suffers from a severe collinearity problem if the marginal cost and demand equations are linear.
Tipo: Working or Discussion Paper Palavras-chave: Market power; Estimation; Demand and Price Analysis; Industrial Organization; L13; C1.
Ano: 2001 URL: http://purl.umn.edu/25012
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Identification of Supply Models of Retailer and Manufacturer Oligopoly Pricing AgEcon
Villas-Boas, Sofia Berto; Hellerstein, Rebecca.
This note outlines conditions under which we can identify a vertical supply model of multiple retailers' and manufacturers' oligopoly-pricing behavior. This is an important question particularly when the researcher believes, contrary to the traditional assumption followed in the empirical literature, that retailers may not be neutral pass-through intermediaries. We show that a data-set of an industry's product prices, quantities, and input prices over time is sufficient to identify the vertical model of retailers' and manufacturers' oligopoly-pricing behavior given nonlinear demand, for homogeneous-products industries, and given multi-product firms, for differentiated-products industries.
Tipo: Working or Discussion Paper Palavras-chave: Identification; Vertical relationships; Oligopoly models of multiple manufacturers and retailers.; Demand and Price Analysis; Industrial Organization; L13; L22.
Ano: 2004 URL: http://purl.umn.edu/25052
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Spatial Competition of Milk Processing Cooperatives in Northern Germany AgEcon
Huck, Petra; Salhofer, Klaus; Tribl, Christoph.
In this paper we develop a theoretical model of competition among marketing cooperatives (co-ops) in a spatial market setting assuming uniform delivered pricing and Loschian conduct. The model is an extension to Alvarez et al.'s (2000) spatial competition model for investorowned firms (IOF). Theoretical results include i) that the prices for raw milk are, ceteris paribus, higher in a pure market of coops than in a pure IOF market; ii) that even coops may imperfectly transmit price changes upstream; and iii) that the price farmers receive for their raw product is a function of economic space (distance times transportation costs) between coops. We test our theoretical findings for milk processing co-ops in Northern Germany using data of monthly average...
Tipo: Conference Paper or Presentation Palavras-chave: Spatial competition; Oligopsony; Milk processing; Cooperatives; Agribusiness; L13; Q13.
Ano: 2006 URL: http://purl.umn.edu/25633
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Assessing Competition in the U.S. Beef Packing Industry AgEcon
Ward, Clement E..
Tipo: Journal Article Palavras-chave: Beef; Cattle; Competition; Concentration; Market structure; Meatpacking; Pricing; Agribusiness; Livestock Production/Industries; L13; Q13.
Ano: 2010 URL: http://purl.umn.edu/94758
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Retail and Wholesale Market Power in Organic Foods AgEcon
Richards, Timothy J.; Acharya, Ram N.; Molina, Ignacio.
The demand for organic fresh fruits and vegetable continues to grow at a rate far higher than the rest of the produce industry. The cost of meeting organic certification standards, however, has meant that supply has been slow to adjust. With limited supply, we hypothesize that organic suppliers enjoy more market power in bargaining over their share of the retail-production cost margin for fresh apples. We test this hypothesis using a random parameters, generalized extreme value demand model (mixed logit) combined with a structural model of retail and wholesale pricing that allows conduct to vary by product attributes (organic or non-organic) and time. We find that organic growers do indeed earn a larger share of the total margin than non-organic...
Tipo: Conference Paper or Presentation Palavras-chave: Organics; Market power; Mixed logit; Game theory; Non-linear pricing.; Industrial Organization; C35; D12; D43; L13; L41; Q13..
Ano: 2009 URL: http://purl.umn.edu/49329
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Slotting Allowances and Retail Product Variety under Oligopoly AgEcon
Innes, Robert; Hamilton, Stephen F..
Slotting fees are fixed charges paid by food manufacturers to retailers for access to the retail market. The role of the practice and its effects on market efficiency are highly controversial. To date, the literature has focused on the effect of the practice on retail prices; however, slotting allowances also have the potential to alter the range of products available to consumers. Our analysis reveals that the strategic use of slotting allowances by oligopoly firms leads to a superior allocation of product variety among retailers. Indeed, absent price effects, we show that slotting allowances lead to the socially optimal provision of product variety.
Tipo: Conference Paper or Presentation Palavras-chave: Slotting fees; Vertical contracts; Monopolization.; Agribusiness; Agricultural and Food Policy; Industrial Organization; Marketing; L13; L14; L42; D43.
Ano: 2010 URL: http://purl.umn.edu/60948
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Market Structure and Environmental Innovation AgEcon
Montero, Juan-Pablo.
This paper studies firms’ incentives to invest in environmental R&D under different market structures (Cournot and Bertrand) and environmental policy instruments (emission standards, taxes, tradable permits and auctioned permits). Because of market strategic effects, R&D incentives vary widely across market structures and instruments. For example, when firms’ products are strategic substitutes (i.e., Cournot), either emission standards, taxes or auctioned permits can provide the most incentives. But when firms’ products are strategic complements, either taxes or auctioned permits provide the most incentives. If markets are perfectly competitive, however, permits and emission standards offer similar incentives that are lower than those offered by...
Tipo: Journal Article Palavras-chave: Environment; Regulation; Market structure; Innovation; Marketing; Environmental Economics and Policy; L13; L50; Q28.
Ano: 2002 URL: http://purl.umn.edu/44294
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Buyer Market Power and Vertically Differentiated Retailers AgEcon
Wang, Shinn-Shyr; Rojas, Christian; Lavoie, Nathalie.
We consider a model of vertical competition where downstream firms (retailers) purchase an upstream input from a monopolist and are able to differentiate from each other in terms of quality. Our primary focus is to study the effects of introducing a large retailer, such as a Wal-Mart Supercenter, that is able to lower wholesale prices (i.e. buyer market power). We obtain two main results. First, the store with no buyer market power responds to the presence of the large retailer by increasing its quality, a finding that is consistent with recent efforts by traditional retailers to enhance shoppers’ buying experience (i.e. quality). Second, the presence of a large retailer causes consumer welfare to increase. There are, however, two reasons for the increase...
Tipo: Working or Discussion Paper Palavras-chave: Buyer market power; Vertical differentiation; Wal-Mart; Agribusiness; Agricultural and Food Policy; Agricultural Finance; Community/Rural/Urban Development; Crop Production/Industries; Farm Management; Financial Economics; Food Security and Poverty; Industrial Organization; Marketing; D43; L13; L81; M31; Q13.
Ano: 2010 URL: http://purl.umn.edu/57165
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Imperfect competition in the fresh tomato industry AgEcon
Hadj Djelloul, Mohammed; Requillart, Vincent; Simioni, Michel.
In this paper, we analyse the market power of the retail industry in the French tomato market. Following the methods developed in the New Empirical Industrial Organization, we develop a structural model of this industry. The analysis is based on detailed data on final consumption and prices at both shipper and consumer levels for two types of tomatoes in France. The structural model is composed of a system of demand equation and supply equation. Supply equation includes a term that represents the market power of the retail sector. We use different models of demand in order to test the robustness of our results. We show that i) elasticity of demand varies during the year ii) the retail sector exercise only a "moderate" market power iii) the estimated...
Tipo: Conference Paper or Presentation Palavras-chave: Market power; Imperfect competition; Fresh products; Crop Production/Industries; Demand and Price Analysis; Marketing; L13; Q13; L66; L81.
Ano: 2008 URL: http://purl.umn.edu/6682
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Limited Cooperation in International Environmental Agreements AgEcon
Karp, Larry S.; Sacheti, Sandeep.
Governments' desire to ameliorate environmental problems may conflict with other goals. Policy levels which balance different objectives can be altered by policy changes in other countries. A decrease in the importance of the pollution problem, or an increase in its global extent, increase the likelihood that tighter environmental regulations in one region induce laxer policies elsewhere. The transboundary character and the importance of environmental externalities also affect the amount of cooperation needed to improve members' welfare in a coalition. More global pollution problems require a larger coalition. However, the critical coalition size may be larger or smaller for more severe problems.
Tipo: Working or Discussion Paper Palavras-chave: Environmental policy; Limited cooperation; International environmental agreements; Strategic complements and substitution; Environmental Economics and Policy; International Relations/Trade; F02; F13; H21; L13; Q28.
Ano: 1996 URL: http://purl.umn.edu/6286
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Market Power and Shadow Prices for Nonrenewable Resources: An Empirical Dynamic Model AgEcon
Lin, C.-Y. Cynthia; Zhang, Wei.
This paper estimates a dynamic model of the world market for nine nonrenewable resources over the period 1970-2004, and tests whether the countries supplying a nonrenewable resource behaved as price-takers or oligopolists. The model generates estimates of the shadow price of the nine minerals with minimal functional form assumptions. The results show that the countries supplying hard coal, lead, and oil behaved as oligopolists during the study period, while the world market for other nonrenewable resources could be characterized as perfectly competitive. The shadow prices do not increase monotonically, which is evidence for stock effects in extraction costs. The shadow prices of most minerals peaked between 1970 and 1980.
Tipo: Conference Paper or Presentation Palavras-chave: Nonrenewable resources; Market power; Shadow price; Empirical dynamic model; Resource /Energy Economics and Policy; Q31; L13.
Ano: 2011 URL: http://purl.umn.edu/103397
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Reformulating competition? Gasoline content regulation and wholesale gasoline prices AgEcon
Brown, Jennifer; Hastings, Justine; Mansur, Erin T.; Villas-Boas, Sofia Berto.
Revised from an earlier version from January 2006. Published in JEEM v. 55:1, January 2008.
Tipo: Working Paper Palavras-chave: Environmental economics; Fuel requirements; Gasoline; Oligopoly; Prices; Regulations; Environmental Economics and Policy; L13; L51; Q50.
Ano: 2007 URL: http://purl.umn.edu/120475
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Wholesale Price Discrimination: Inference and Simulation AgEcon
Villas-Boas, Sofia Berto.
This paper makes inferences about wholesale price discrimination and uniform wholesale pricing policy in a national grocery retail market where wholesale price discrimination occurs. I estimate demand and a supply model of multiple retailers’ and manufacturers’ oligopoly-pricing behavior where manufacturers may engage in wholesale price discrimination, which allows me to recover brand level marginal costs in this market. Then I simulate the welfare effects of no wholesale price discrimination via uniform price regulation given observed data on retail and input prices and retail quantities sold and not available data on wholesale prices. This approach uses retail level scanner data on coffee produced by multiple manufacturers sold at the largest retail...
Tipo: Working or Discussion Paper Palavras-chave: Uniform Wholesale Pricing; Oligopoly models of multiple manufacturers and retailers; Coffee Retail Market; Demand and Price Analysis; L13.
Ano: 2007 URL: http://purl.umn.edu/7166
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Vertical Channel Analysis of the U.S. Milk Market AgEcon
Hovhannisyan, Vardges; Stiegert, Kyle W..
The objective of the research in this study is to evaluate the pricing and market conduct of milk manufacturers and retailers. Using data from a U.S. Midwestern state, we estimate a random coefficient logit demand model (RCL) to empirically investigate a range of possible scenarios in the milk supply chain. These include vertical leader-follower model with underlying Bertrand-Nash pricing, models allowing for nonlinear pricing contracts, and collusion scenarios at various levels in the supply chain. This study contributes to the literature in the following ways. First, it generalizes the RCL demand model via Box-Cox power transformation. While previous studies rely on ad hoc specified linear indirect utility, this procedure allows data to determine the...
Tipo: Conference Paper or Presentation Palavras-chave: Market conduct; Random coefficient logit; Vertical chain; Box-Cox power transformation; Agricultural and Food Policy; Demand and Price Analysis; Industrial Organization; D43; L13.
Ano: 2011 URL: http://purl.umn.edu/103631
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Mixed Markets in the Food Processing Industry AgEcon
Sorensen, Ann-Christin.
The food processing industry in Western countries operates in markets that usually are highly concentrated, consisting of a few cooperatives and investor-owned firms. However, in the literature some studies questioned whether the mixed market structure is a stable equilibrium, and suggestions are made that the cooperatives eventually will crowd out all investor-owned firms. To analyse the problem, the family of models of mixed markets is generalized and analysed. It is shown that a mixed market equilibrium may occur under quite general conditions. Also, it is shown that the investor-owned firm may serve as a yardstick of production to the cooperative, helping farmers achieve an increased payoff relative to a situation with a single coop in the market.
Tipo: Conference Paper or Presentation Palavras-chave: Cooperative; Endogenous membership; Investor-owned-firm; Mixed market; Yardstick of production; Agribusiness; L11; L13; P12; P13; Q13.
Ano: 2005 URL: http://purl.umn.edu/24741
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Strategic Investment and Excess Capacity: A Study of the Taiwanese Flour Industry AgEcon
Ma, Tay-Cheng.
The Taiwanese flour industry’s capacity utilization rate has maintained an extremely low level of 40% for more than 20 years. This article sets up a two-stage game model and uses the strategic effect of the firm’s capital investment on its rivals’ outputs to explain the nature of this excess capacity. The model is tested with panel data from the Taiwanese flour industry by using non-linear three-stage least squares. The evidences indicate that a large capacity built in the past could have been used strategically to reduce other firms’ outputs, in the context of a concerted action among the incumbent firms.
Tipo: Journal Article Palavras-chave: Strategic investment; Two-stage game; Collusion; Conjectural variation; L13.
Ano: 2005 URL: http://purl.umn.edu/37516
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The iPhone goes downstream: mandatory universal distribution AgEcon
Karp, Larry S.; Perloff, Jeffrey M..
Apple’s original decision to market iPhones using a single downstream vendor prompted calls for mandatory universal distribution (MUD), whereby all downstream vendors would sell the iPhone under the same contract terms. The upstream monopoly may want either one or more downstream vendors, and, in either case, consumer welfare may be higher with either one or more firms. If the income elasticity of demand for the new good is greater than the income elasticity of the existing generic good, the MUD requirements leads to a higher equilibrium price for both the new good and the generic, and therefore lowers consumer welfare.
Tipo: Working Paper Palavras-chave: Vertical restrictions; Mandatory universal distribution; New product oligopoly; Institutional and Behavioral Economics; L12; L13; L42.
Ano: 2011 URL: http://purl.umn.edu/123636
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An empirical investigation of the welfare effects of banning wholesale price discrimination AgEcon
Villas-Boas, Sofia Berto.
3rd revision CUDARE Working Paper 1017R3 October 2008, 2nd revision CUDARE Working Paper 1017R2 August 2008, 1st revision CUDARE Working Paper 1017R February 2007, CUDARE Working Paper 1017 August 2006.
Tipo: Working Paper Palavras-chave: Economic theory does not provide sharp predictions on the welfare effects of banning wholesale price discrimination: if downstream costs differences exist then discrimination shifts production inefficiently; Towards high cost retailers; So a ban increases welfare; If differences in price elasticity of demand across retailers exist; Discrimination may increase welfare if more market is covered; So a ban reduces welfare. Using retail prices and quantities of coffee brands sold by German retailers; I estimate a model of demand and supply and separate cost and demand differences. Simulating a ban on wholesale price discrimination has positive welfare effects in this market; And less if downstream cost differences shrink; Or with less competition.; Consumer/Household Economics; L13.
Ano: 2008 URL: http://purl.umn.edu/120491
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R&D Collaboration Networks in Mixed Oligopoly AgEcon
Zikos, Vasileios.
We develop a model of endogenous network formation in order to examine the incentives for R&D collaboration in a mixed oligopoly. Our analysis reveals that the complete network, where each firm collaborates with all others, is uniquely stable, industry-profit maximizing and efficient. This result is in contrast with earlier contributions in private oligopoly where under strong market rivalry a conflict between stable and efficient networks is likely to occur. A key finding of the paper is that state-owned enterprises may be used as policy instruments in tackling the potential conflict between individual and collective incentives for R&D collaboration.
Tipo: Working or Discussion Paper Palavras-chave: Networks; R&D Collaboration; Mixed Oligopoly; Research and Development/Tech Change/Emerging Technologies; C70; L13; L20; L31; L32; O31; D85.
Ano: 2008 URL: http://purl.umn.edu/6228
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The Retail Service, The Market Power, and the Vertical Relationships in Breakfast Cereals Industry AgEcon
Chidmi, Benaissa; Lopez, Rigoberto A.; Cotterill, Ronald W..
This article extends the Berry, Levinsohn, Pakes (1995) model to include retail services by Boston supermarkets in an equilibrium model of breakfast cereals and then tests alternative vertical pricing games between manufacturers and supermarkets to ascertain who’s got the pricing power. Empirical results show that retail services play a significant role in market equilibrium. Consumers are willing to pay for additional retail services embedded in their cereal purchases, especially those with higher income and no kids. Markups and market shares increase with the level of retail services, although manufacturers dominate pricing decisions in the market channel for breakfast cereals. Significant downward biases in price elasticities and markup estimates result...
Tipo: Conference Paper or Presentation Palavras-chave: Vertical relationships; Discrete choice; Supermarkets; Market channel; Industrial Organization; Marketing; L11; L13; L66.
Ano: 2009 URL: http://purl.umn.edu/51770
Registros recuperados: 78
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