SABIIA - Sistema Aberto e Integrado de Informação em Agricultura (Sabiia)

Spatial Pricing and the Location of Processors in Agricultural Markets

Gast, Michael W..

A tariff-rate quota (TRQ) is a two-tier tariff. The Uruguay Round Agreement on Agriculture provides for the transformation of remaining import quotas into TRQs in order to eliminate quantity restricting import barriers to trade. However, more often than not are TRQs de-facto-quotas. The profit-maximizing condition for an importer confronted with two differentiated goods under a common quota is derived. The main focus of the present article is the US import regime for cheese which was transformed according to the tariffication process into a TRQ system. Analysis of cheese import quantities shows that this transformation has indeed little changed. Being the only remarkable exception in partially overcoming the import barriers, the case of New Zealand...

Tipo: Journal Article

Palavras-chave: Tariff-rate quota; Cheese; USA; Differentiated products; Price discrimination; Agricultural and Food Policy; International Relations/Trade.

Ano: 2002

URL: http://purl.umn.edu/98246

Graubner, Marten; Balmann, Alfons; Sexton, Richard J..

Spatially dispersed production and processing, endemic for most agricultural or renewable resource markets, causes oligopsonistic competition. The possibility and use of spatial price discrimination in these markets is well documented. It is also well known that the location of processors relative to competitors crucially affects the intensity of competition. However, insights regarding the relation between spatial price discrimination and the spatial differentiation of firms are barely present because the simultaneous investigation of these issues is often intractable analytically. We use computational economics to study these problems under a general theoretical framework. For instance, we show whether and under which conditions firms choose to...

Environmental Regulation, Market Power and Price Discrimination in the Agricultural Chemical Industry

Palavras-chave: Spatial price competition; Spatial differentiation; Price discrimination; Computational economics; Agribusiness.

Ano: 2011

URL: http://purl.umn.edu/114601

Smith, Vincent H.; Johnson, James B..

Chemical companies generally support environmental regulatory segregation Canadian and U.S. agricultural chemical markets, apparently because it enables them to practice third order price discrimination. This study provides new cross section evidence that suggests price discrimination is practiced. We examine the potential implications chemical market desegregation for agricultural chemical prices, farmer welfare, and consumer welfare.

Trade Liberalization in the Dairy Sector: An Overview

Palavras-chave: Price discrimination; Agricultural chemicals; Economic welfare; Environmental Economics and Policy.

Ano: 2005

URL: http://purl.umn.edu/19520

Meilke, Karl D.; Lariviere, Sylvain; Martin, Craig.

The world dairy industry is one of the most heavily protected in the agri-food sector. Exports of dairy products are dominated by the EU, the United States, New Zealand, and Australia. The major importers of dairy products are far less concentrated but include the EU, Japan, Mexico, Russia, the United States, and many others. The Canadian dairy industry came out of the Uruguay Round of trade negotiations with the continued ability to practise supply management, thereby allowing it to: (1) maintain prices above world market levels and (2) control the allocation of output to the domestic market. In fact, the Agreement on Agriculture opened the door for Canada to become a more aggressive exporter of dairy products by practising price discrimination between...

Tipo: Journal Article

Palavras-chave: Dairy; Dispute; Export competition; Price discrimination; Processors; Tariffication; International Relations/Trade.

Ano: 2001

URL: http://purl.umn.edu/23855

Free Trade, Pesticide Regulation and NAFTA Harmonization

Third Country Effects of Price Discrimination: The Case of the Canadian Wheat Board

Freshwater, David.

Pesticides are an important farm input both in terms of cost and in terms of their impact on crop yields and quality. With freer trade in agricultural output, differences in cost of production, yield and quality can have a large effect on competitiveness. Thus there is an increased demand by farmers in Canada and the United States for harmonization of pesticide regulations, and in particular for the option to import registered pesticides for their own use. Under NAFTA the three national governments are moving to make pesticide regulation more uniform, but there are still significant differences in regulatory structure and these effectively preclude direct imports by farmers at this time. Moreover, while farmers believe they would as a group benefit from a...

Tipo: Journal Article

Palavras-chave: NAFTA; Pesticides; Price discrimination; Regulation; International Relations/Trade.

Ano: 2003

URL: http://purl.umn.edu/23817

Rude, James; Brewin, Derek G.; White, Martin.

This study considers whether the major concern with the behaviour of exporting state trading enterprises (STEs) should be the practice of price discrimination. Using a differentiated products world wheat model, the impacts of Canadian price discrimination on the welfare of competing exporters are considered. The results show that competing exporters could be better or worse off as result of price discrimination, but the impacts were small. Over a range of possible elasticities US producers were generally better off if North American arbitrage is assumed. Other wheat exporting regions could see their producer’s welfare change between 2 and -0.5%. Given these small impacts, the study suggests that explicit disciplines on discriminatory pricing exporting STEs...

Competition Policy in Agriculture: A Review of Methods

Palavras-chave: Price discrimination; State trading enterprises; And trade negotiations; Crop Production/Industries; International Relations/Trade; Q17; F13.

Ano: 2007

URL: http://purl.umn.edu/7338

Monopoly Extraction of an Exhaustible Resource with Two Markets

MacAulay, T. Gordon.

The nature of the competition policy public benefit tests, applied to various agricultural industries, is reviewed. Then, various analytical techniques that have been applied to the assessment of the public benefit test are examined. These techniques include analysis of price premiums, consideration of pooling and averaging, pricing to market tests, what-if scenarios, market power analysis, and price discriminating monopolist models. Some of the advantages and disadvantages of these approaches are summarised. Generally, all of these approaches have various strengths and a number of weaknesses so that the case for the assessment of costs and benefits must substantially depend on the logic of the effects of the regulation rather than the results of any...

Tipo: Presentation

Palavras-chave: Competition policy; Price discrimination; Pricing to market; Price premiums; Agricultural and Food Policy.

Ano: 2000

URL: http://purl.umn.edu/123697

Fischer, Carolyn; Laxminarayan, Ramanan.

Although much has been written about the implications of monopoly power for the rate of extraction of natural resources, the specific case in which the resource can be sold in two markets with different elasticities of demand has escaped notice. We find that a monopolist facing two markets with differing iso-elastic demand schedules extracts more rapidly than the social planner, whether or not arbitrage prevents price discrimination between markets. This analysis is relevant in the case of many resources -such as natural gas used for power generation and household heating, or petroleum used for making plastics and as fuel.

MARKET COMPETITION AND METROPOLITAN-AREA GROCERY PRICES

Palavras-chave: Exhaustible resources; Monopoly; Markets; Price discrimination; Environmental Economics and Policy; D42; Q3.

Ano: 2004

URL: http://purl.umn.edu/10704

Binkley, James K.; Connor, John M..

This paper examines the relationship of 1987 retail grocery prices to supermarket sales concentration across 95 U.S. metropolitan areas. The regression model incorporates a large number of population, retail-cost, and retail competition factors and separate prices by type of grocery item. We find that the concentration-price relationship is sensitive to item type: positive for packaged, branded, dry groceries and unrelated for produce, meat, and dairy product prices. As for market rivalry, we find that small grocery stores provide no grocery price competition for supermarkets. However, branded grocery prices are driven down by fast-food places and by rapid price churning, whereas for unbranded foods the presence of warehouse stores places downward...

Location and Spatial Pricing in Agricultural Markets

Palavras-chave: Retail grocery trade; Pricing policy; Variable price merchandising; Market competition; Category management; Market structure; Sales concentration; Price discrimination; Price rivalry; Oligopoly; Food demand; Food prices; Consumer/Household Economics.

Ano: 1996

URL: http://purl.umn.edu/25988

Graubner, Marten; Balmann, Alfons; Sexton, Richard J..

Agricultural markets often feature significant transport costs and spatially distributed production and processing which causes spatial imperfect competition. Spatial economics considers the firms’ decisions regarding location and spatial price strategy separately, usually on the demand side, and under restrictive assumptions. Therefore, alternative approaches are needed to explain, e.g., the location of new ethanol plants in the U.S. at peripheral as well as at central locations and the observation of different spatial price strategies in the market. We use an agent-based simulation model to analyze location and spatial pricing in a general model under multi-firm competition, two-dimensional space, and a continuum of potential price strategies. The...

EFFECTS OF THE CANADIAN WHEAT BOARD ON THE U.S. WHEAT INDUSTRY

Palavras-chave: Spatial competition; Location; Price discrimination; Oligopsony; Simulation; Industrial Organization; Research Methods/ Statistical Methods; C63; Q11; R32.

Ano: 2010

URL: http://purl.umn.edu/61225

Koo, Won W.; Jin, Hyun Joung; Mattson, Jeremy W.; Taylor, Richard D.; Cho, Guedae.

The practices of the Canadian Wheat Board (CWB) are an important issue in U.S. - Canada trade disputes and WTO negotiations. This study analyzes the CWB?s effect on U.S. producers by reviewing findings from previous research and developing models to analyze CWB wheat exports to the United States and the competitive structure of Canadian wheat exports in the world market. U.S. grain producers could benefit from the removal of the CWB as the United States could become more competitive in export markets. However, elimination of the CWB could also result in an increase in Canadian wheat exports to the United States as Canadian producers near the border could sell directly to the United States to take advantage of market opportunities. The net effect is...

Who Pays for Energy Efficiency Standards?

Palavras-chave: Canadian Wheat Board; State trading enterprises; Price discrimination; Wheat exports; Crop Production/Industries; International Relations/Trade.

Ano: 2004

URL: http://purl.umn.edu/23530

Fischer, Carolyn.

Policies to promote energy efficiency in household appliances have different impacts, depending on the structure of market supply. If provision is perfectly competitive, markets will offer the variety of energy efficiency levels that consumers demand. However, if producers can price discriminate, using energy intensity to help segment consumer demand, consumers of low-end appliances are offered too little energy efficiency so that high-end consumers can be charged more for efficient appliances. Minimum energy efficiency standards can then improve welfare. We also consider average intensity standards, energy prices, and innovation and identify important differences in their effects on energy intensity, welfare, and consumers, depending on market structures....

Price Discrimination and Market Power in Export Markets: The Case of the Ceramic Tile Industry

Palavras-chave: Energy efficiency; Appliance; Standards; Price discrimination; Resource /Energy Economics and Policy; Q40; Q55; Q58; O3.

Ano: 2004

URL: http://purl.umn.edu/10473

Requena Silvente, Francisco.

This paper combines the pricing-to-market equation and the residual demand elasticity equation to measure the extent of competition in the export markets of ceramic tiles, which has been dominated by Italian and Spanish producers since the late eighties. The findings show that the tile exporters enjoyed substantial market power over the period 1988-1998, and limited evidence that the export market has become more competitive over time.

Tipo: Journal Article

Palavras-chave: Price discrimination; Market power; Export markets; Ceramic tile industry; F14; L13; L61.

Ano: 2005

URL: http://purl.umn.edu/37143

SINGLE DESK SELLING OF CANADIAN BARLEY

Johnson, D. Demcey.

An optimization model is used to evaluate the implications of single-desk selling of Canadian barley for trade flows and producer welfare. Effects on U.S. imports and barley prices are also considered.

Price Discrimination and EU Dairy Policy: An Economic Evaluation of Policy Options

Palavras-chave: Canadian Wheat Board; Barley; Price discrimination; Grain trade; Crop Production/Industries; Marketing.

Ano: 1999

URL: http://purl.umn.edu/35669

Bouamra-Mechemache, Zohra; Chavas, Jean-Paul; Cox, Thomas L.; Requillart, Vincent.

In a period of market liberalization and multilateral trade negotiations, price discrimination for commodities with distinct markets provides additional policy options to support farm income. While both the USA and Canada have implemented price discrimination policies in their domestic dairy sector, so far the European Union (EU) has not. This paper evaluates the options of developing a price discrimination policy in the EU dairy sector. The analysis is based on an interregional model of the EU dairy sector, involving milk production, dairy processing, and consumption of ten dairy commodities in nine regions. The paper shows that a price discrimination policy that increases prices for commodities with more inelastic demand (fluid milk, soft dairy products)...

Reform of Agricultural Export Credit Programs

Palavras-chave: EU; Price discrimination; Pooling; Dairy policy; Demand and Price Analysis.

Ano: 2002

URL: http://purl.umn.edu/24899

Dumping - One of Those Economic Myths

Rude, James.

This paper examines whether government-sponsored export credit arrangements have the same effect on trade as direct export subsidies. The export credit programs for several major agricultural exporters are described. These programs are compared to OECD disciplines for export credit arrangements, and the consequences of extending these guidelines to agriculture are analysed. None of the programs discussed would be consistent with the OECD guidelines. Since export credit arrangements have many of the same characteristics as targeted export subsidies, the same analytical framework can be used to analyse these programs. However, it is necessary to determine implicit subsidy values for the program.

Tipo: Journal Article

Palavras-chave: Export credit; Export subsidy; Price discrimination; WTO; International Relations/Trade.

Ano: 2000

URL: http://purl.umn.edu/23836

FACTORS THAT INFLUENCE PRICES PRODUCERS RECEIVE FOR HOGS: STATISTICAL ANALYSIS OF KILLSHEET AND SURVEY DATA

Kerr, William A..

Dumping is one of the most poorly understood and contentious issues in trade policy. The primary reason is that the agreed definitions of dumping are not based on a solid economic foundation. This allows antidumping measures to be used for protectionist ends and to harass trade partners. While putting antidumping measures on a sounder economic foundation in international law may be difficult given their popularity with politicians, no progress can be made until economists provide a theoretically sustainable definition of dumping and devise a set of transparent criteria for determining if dumping is occurring. This paper explains the difficulties with the current definitions of dumping and outlines an agenda for future progress.

Tipo: Journal Article

Palavras-chave: Dumping; International predation; Price discrimination; Protectionist; International Relations/Trade.

Ano: 2001

URL: http://purl.umn.edu/23876

Lawrence, John D..

This paper evaluates the results of a survey of Iowa pork producers, examining potential price discrimination by packers. Prices varied greatly across producers, and the examined variables explain just over half of the variation. Factors under the producer's control were the most significant variables and accounted for the vast majority of the explainable difference in price among producers. Packer buying systems also accounted for some difference in producer prices. Finally, variables related to operation size, while statistically significant, increased the explanatory values of the equation very little.