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

Engel, Eduardo M.R.A.; Fischer, Ronald; Galetovic, Alexander.

In many circumstances, a principal, who wants prices to be as low as possible, must contract with agents who would like to charge the monopoly price. This paper compares a Demsetz auction, which awards an exclusive contract to the agent bidding the lowest price (competition for the field) with having two agents provide the good under (imperfectly) competitive conditions (competition in the field). We obtain a simple sufficient condition showing unambiguously which option is best. The condition depends only on the shapes of the surplus function of the principal and the profit function of agents, and is independent of the particular duopoly game played ex post. We apply this condition to three canonical examples-procurement, royalty contracts and...

DISTINGUISHING THE SOURCE OF MARKET POWER: AN APPLICATION TO CIGARETTE MANUFACTURING

Palavras-chave: Demsetz auction; Double marginalization; Franchising; Joint vs. separate auctions; Monopoly; Procurement; Dealerships; Royalty contracts; Research Methods/ Statistical Methods; D44; L12; L92.

Ano: 2002

URL: http://purl.umn.edu/28406

Raper, Kellie Curry; Love, H. Alan; Shumway, C. Richard.

We compare nonparametric and nonstructural market power tests using data from the cigarette manufacturing industry. Tests are implemented to examine both monopoly and monopsony power exertion by cigarette manufacturers. Results indicate that market power in the tobacco industry, previously attributed to monopoly power exertion, should at least in part be attributed to monopsony market power in the upstream tobacco market.

Dynamic Informative Advertising of New Experience Goods

Palavras-chave: Market power; Nonparametric; Nonstructural; Monopsony; Monopoly; Cigarette manufacturing; Agribusiness.

Ano: 1998

URL: http://purl.umn.edu/24021

Saak, Alexander E..

This paper analyzes the optimal informative advertising and price policies of a monopolist who sells a new experience good over time to a population of heterogeneous buyers. Under certain conditions, the advertising rate first increases and then decreases over the marketing cycle with a peak occurring at the end of the introductory period when prices are low. Advertising lowers introductory prices but also shortens the period during which they are offered. Advertising raises the share of consumers who know their valuation in the long-run but not necessarily in the short-run

Dynamic Informative Advertising of New Experience Goods

Palavras-chave: Monopoly; Private Information; Consumer Learning; Informative Advertising; Consumer/Household Economics; Industrial Organization; Marketing.

Ano: 2010

URL: http://purl.umn.edu/61326

Saak, Alexander E..

This paper analyzes the optimal advertising and price policies of a monopolist who sells a new experience good over time to a population of heterogeneous forward-looking buyers. We consider informative advertising that can complement or substitute for learning-by-purchasing, and show that the advertising intensity always peaks during the early stages when the price extracts surplus from the buyers who are yet to learn their valuation for the good. We also show that even though informative advertising may temporarily raise prices and slow down the learning process, an advertising ban can reduce welfare.

Gains from Trade Liberalization with Imperfectly Competitive World Markets. A Note.

Palavras-chave: Monopoly; Advertising; Experience Goods; Learning; Private Information; Agribusiness; Agricultural and Food Policy; Demand and Price Analysis; Industrial Organization; Marketing.

Ano: 2011

URL: http://purl.umn.edu/103536

Anania, Giovanni.

The paper shows how analyses assuming perfect competition can yield a distorted estimation of the expected effects of a trade liberalization when market imperfections exist. The analytical framework adopted is very simple and three extreme imperfect market structures are considered. In the first case, the exporting country maximizes its producer and consumer surplus by intervening in the world market. The second market imperfection considered is the existence of a private firm playing the role of "pure middleman" in the world market. Then the case of a producer-owned marketing board which is granted exclusive export authority is addressed. It is shown that under all three scenarios, if perfect competition is assumed when market imperfections exist, the...

Gains from trade liberalization with imperfectly competitive world markets. A note.

Palavras-chave: Trade liberalization; Imperfect markets; Monopoly; Monopsony; Marketing board; International Relations/Trade.

Ano: 2002

URL: http://purl.umn.edu/24971

GENETICALLY MODIFIED CROP INNOVATIONS AND PRODUCT DIFFERENTIATION: TRADE AND WELFARE EFFECTS IN THE SOYBEAN COMPLEX

Anania, Giovanni.

The paper shows how analyses assuming perfect competition can yield a distorted estimation of the expected effects of a trade liberalization when market imperfections exist. The analytical framework adopted is very simple and three extreme imperfect market structures are considered. In the first case, the exporting country maximizes its producer and consumer surplus by intervening in the world market. The second market imperfection considered is the existence of a private firm playing the role of "pure middleman" in the world market. Then the case of a producer-owned marketing board which is granted exclusive export authority is addressed. It is shown that estimates of the impact of a tariff reduction in terms of prices and volume traded obtained assuming...

Tipo: Journal Article

Palavras-chave: Trade liberalization; Imperfect markets; Monopoly; Monopsony; Marketing board; International Relations/Trade; F12; F13; Q17; Q18.

Ano: 2003

URL: http://purl.umn.edu/28798

Sobolevsky, Andrei; Moschini, GianCarlo; Lapan, Harvey E..

We develop a new partial equilibrium, four-region world trade model for the soybean complex comprising soybeans, soybean oil, and soybean meal. In the model, some consumers view genetically modified Roundup Ready (RR) soybeans and products as weakly inferior to conventional ones; the RR seed is patented and sold worldwide by a U.S. firm; and producers employ a costly segregation technology to separate conventional and biotech products in the supply chain. The calibrated model is solved for equilibrium prices, quantities, production patterns, trade flows, and welfare changes under different assumptions regarding regional government's production and trade policies, differentiated consumer tastes, and several other demand and supply parameters. Incomplete...

Grain Distribution in Ghana under Imperfectly Competitive Market Conditions

Palavras-chave: Biotechnology; Differentiated demand; Food labeling; Genetically modified products; Identity preservation; Innovations; Intellectual property rights; International trade; Loan deficiency payments; Market failure; Monopoly; Roundup Ready soybeans; Crop Production/Industries; Research and Development/Tech Change/Emerging Technologies.

Ano: 2002

URL: http://purl.umn.edu/18348

Langyintuo, Augustine S..

Interspatial and intertemporal grain distribution in Ghana is a private sector activity carried out mainly by traders. These traders sometimes collude to maximize their joint profits. By so doing they influence the conduct of the grains market. To examine the effect of their actions on the informal maize market in Ghana, a spatial equilibrium model was estimated under three scenarios: (1) Perfect competition, (2) Cournot-Narsh conjectures, and (3) Collusion. The results indicate that imperfect competition distorts grain flows, reduces consumer welfare and depresses traders’ sales revenue. Collusive behavior of traders, on the other hand, causes the greatest distortion of grain flows as well as trader and consumer welfare. These results draw attention to...

Tipo: Journal Article

Palavras-chave: Spatial equilibrium; Monopoly; Imperfect competition; Interspatial; Cournot- Narsh conjectures; Crop Production/Industries; D4; L1.

Ano: 2010

URL: http://purl.umn.edu/96166

How Market Power Changes in Monopoly: Using Lau’s Hessian Identities

Yamaura, Koichi; Featherstone, Allen M..

This research examines market power using Lau’s Hessian Identity relationships based on the empirical properties of duality theory. We compare the performance of the proposed dual approach using Lau’s Hessian Identity relationships with the simple traditional dual approach.

Market Concentration of the Processed Food in Korea

Palavras-chave: Lau’s Hessian Identity; Monte Carlo simulation; Market Power; Monopoly; Marketing.

Ano: 2011

URL: http://purl.umn.edu/103932

Marketing via Friends: Strategic Diffusion of Information in Social Networks with Homophily

Kim, Sounghun.

In Korea, processed food markets have various shapes of structure: the markets of ice cream, special dietary food, noodles, sugar are highly concentrated, while the markets of gimchi, pickles, and ice are not very concentrated. The level of market concentration changes over time. These market structures and structural changes cause impacts on related industries as well as own industries. For the more successful policies, the paper suggests three ideas: to realize that each food processing industry has a different industry structure, to understand the relationship between the food processing industry and upstream and downstream industries and to take into account opinions from various sources before adopting new policies.

Tipo: Journal Article

Palavras-chave: Processed food market; Food processing industry; Market structure; Market concentration; CR4; CR10; Monopoly; Oligopoly; Korea; Korean; Agribusiness; Agricultural and Food Policy; Food Consumption/Nutrition/Food Safety.

Ano: 2008

URL: http://purl.umn.edu/45682

Chuhay, Roman.

The paper studies the impact of homophily on the optimal strategies of a monopolist, whose marketing campaign of new product relies on a word of mouth communication. Homophily is a tendency of people to interact more with those who are similar to them. In the model there are two types of consumers embedded into a social network, which differ in friendship preferences and desirable design of product. Consumers can learn about the product directly from an advertisement or from their neighbors. The monopolist chooses the product design and price to influence a pattern of communication among consumers. We find a number of results: (i) for low levels of homophily the product attractive to both types of consumers is preferred to specialized products; (ii) the...

Monopoly Extraction of an Exhaustible Resource with Two Markets

Palavras-chave: Networks; Word of Mouth; Viral Marketing; Homophily; Diffusion; Social Networks; Random Graphs; Monopoly; Pricing Strategy; Product Design; Marketing; Advertisement; Environmental Economics and Policy; D21; D42; D60; D83; L11; L12.

Ano: 2010

URL: http://purl.umn.edu/96667

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.

Patents and Other Intellectual Property Rights

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

Ano: 2004

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

Moschini, GianCarlo.

This article reviews intellectual property rights (IPRs), with some emphasis on the protection of agricultural and life sciences innovations. The main institutional features of IPRs are first discussed, along with a brief historical background and an articulation of the main rationale for the existence of such rights. This is followed by an overview of the principal economic issues related to IPRs. The main benefit/cost trade-offs of allowing patents and other IPRs are explained, and specific issues are then analyzed in some depth, including the scope of patent protection, the effects of patent races, and the problems arising when IPRs concern cumulative and/or complementary innovations. The economics of IPRs are further illustrated by considering...

THE PROVISION OF RAIL SERVICE: THE IMPACT OF COMPETITION

Palavras-chave: Efficiency; Incentives; Innovation; Invention; Market failure; Monopoly; Property rights; Public good; Second best; Research and Development/Tech Change/Emerging Technologies.

Ano: 2001

URL: http://purl.umn.edu/18466

Fulton, Murray E.; Gray, Richard S..

Grain transportation is one of the most important economic issues for grain producers in the Northern Plains. The reliance on export markets and the long distances to port position means that transportation costs have a significant effect on the price received by farmers. In the prairie region of Canada, rail transportation is undergoing a major transformation that will affect the competitive positions of agriculture in both the United States and Canada and influence the direction of grain flows between the two countries. Rail rates are no longer legislated although a cap is still in place), restrictions on branch line abandonment have been lifted, and further deregulation of price and car allocation is being considered. Some parties, including the...