Consulta: subjectFacets:"L13"
Registros recuperados: 78
Data/hora: 02/06/2024 17:52:00

Collinearity in Linear Structural Models of Market Power
Provedor de dados: 31
Autores: 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

Identification of Supply Models of Retailer and Manufacturer Oligopoly Pricing
Provedor de dados: 31
Autores: 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

Spatial Competition of Milk Processing Cooperatives in Northern Germany
Provedor de dados: 31
Autores: 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

Assessing Competition in the U.S. Beef Packing Industry
Provedor de dados: 31
Autores: 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

Retail and Wholesale Market Power in Organic Foods
Provedor de dados: 31
Autores: 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

Slotting Allowances and Retail Product Variety under Oligopoly
Provedor de dados: 31
Autores: 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

Market Structure and Environmental Innovation
Provedor de dados: 31
Autores: Montero,   Juan-Pablo.
This paper studies firms’ incentives to invest in environmental R&amp;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&amp;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

Buyer Market Power and Vertically Differentiated Retailers
Provedor de dados: 31
Autores: 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

Imperfect competition in the fresh tomato industry
Provedor de dados: 31
Autores: 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

Limited Cooperation in International Environmental Agreements
Provedor de dados: 31
Autores: 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

Market Power and Shadow Prices for Nonrenewable Resources: An Empirical Dynamic Model
Provedor de dados: 31
Autores: 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

Reformulating competition?  Gasoline content regulation and wholesale gasoline prices
Provedor de dados: 31
Autores: 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

Wholesale Price Discrimination: Inference and Simulation
Provedor de dados: 31
Autores: 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

Vertical Channel Analysis of the U.S. Milk Market
Provedor de dados: 31
Autores: 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

Mixed Markets in the Food Processing Industry
Provedor de dados: 31
Autores: 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

Strategic Investment and Excess Capacity: A Study of the Taiwanese Flour Industry
Provedor de dados: 31
Autores: 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

The iPhone goes downstream: mandatory universal distribution
Provedor de dados: 31
Autores: 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

An empirical investigation of the welfare effects of banning wholesale price discrimination
Provedor de dados: 31
Autores: 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

R&amp;D Collaboration Networks in Mixed Oligopoly
Provedor de dados: 31
Autores: Zikos,   Vasileios.
We develop a model of endogenous network formation in order to examine the incentives for R&amp;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&amp;D collaboration.
Tipo: Working or Discussion Paper
Palavras-chave: Networks; R&amp;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

The Retail Service, The Market Power, and the Vertical Relationships in Breakfast Cereals Industry
Provedor de dados: 31
Autores: 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

Buyer Alliances as Countervailing Power in WIC Infant-Formula Auctions
Provedor de dados: 31
Autores: Davis,   David E.
State WIC agencies in infant-formula procurement auctions receive lower bids and final prices when they are in buyer’s alliances than when they are unallied. The Special Supplemental Nutrition Program for Women, Infants, and Children (WIC) uses an auction to procure infant formula. Manufacturers bid on the right to be an agency’s sole supplier by offering a rebate on formula sold through WIC. A theoretical model of rebates shows that bidders may shade their bids and extract surplus from agencies. An empirical estimation shows that bids are lower to alliances suggesting that alliances countervail the power of bidders to extract surplus.
Tipo: Working Paper
Palavras-chave: Auctions; Food assistance; Countervailing power; Buyer concentration; Oligopoly; WIC.; Consumer/Household Economics; Food Consumption/Nutrition/Food Safety; Industrial Organization; L13; D43; D44; Q18; I18.
Ano: 2011
URL: http://purl.umn.edu/123863

The Social Value of Using Biodiversity in New Pharmaceutical Product Research
Provedor de dados: 31
Autores: Simpson,   R. David; Craft,   Amy B.
Biologists and conservation advocates have expressed grave concern over perceived threats to biological diversity. "Biodiversity prospecting" -- the search among naturally occurring organisms for new products of agricultural, industrial, and, particularly, pharmaceutical value -- has been advanced as both a mechanism and a motive for conserving biological diversity. Economists and others have attempted to estimate the value of biodiversity for use in new pharmaceutical project research. Most of these existing approaches are incomplete, however, as they have not considered full social welfare, i.e., both consumer surplus and profit. This paper addresses social welfare by calibrating a model of competition between differentiated products with data from the...
Tipo: Working or Discussion Paper
Palavras-chave: Biodiversity prospecting; Differentiated products; Pharmaceutical research and development; Biogeographic models; Global warming; Habitat conversion; Health Economics and Policy; D43; L13; Q29.
Ano: 1996
URL: http://purl.umn.edu/10877

Spatial Competition and Market Power in Banking
Provedor de dados: 31
Autores: Richards,   Timothy J.; Acharya,   Ram N.; Kagan,   Albert.
Banks in non-metropolitan areas compete in a spatially-differentiated environment. Particularly with the advent of electronic banking services, however, there is some question as to how much market power is conferred by spatial separation from rivals. This paper estimates a structural model of the supply and demand of banking services in which pricing power is allowed to depend explicitly on the distance between rival banks. A spatial autoregressive econometric model shows that approximately 38.0% of economic surplus earned by firms in non-metropolitan banking in the upper midwest is due to spatial market power.
Tipo: Conference Paper or Presentation
Palavras-chave: Banking; Market power; Non-metropolitan markets; Spatial econometrics; Community/Rural/Urban Development; Financial Economics; C21; D43; G21; L13.
Ano: 2007
URL: http://purl.umn.edu/6566

Empirical evidence on the role of non linear wholesale pricing and vertical restraints on cost pass-through
Provedor de dados: 31
Autores: Bonnet,   Céline; Dubois,   Pierre; Villas-Boas,   Sofia Berto.
How a cost shock is passed through into final consumer prices may relate to nominal price stickiness and rigidities, the existence of non adjustable cost components, strategic mark-up adjustments, or other contract terms along the supply distribution chain. This paper presents a simple framework to assess the potential role of non linear pricing contracts and vertical restraints such as resale price maintenance or wholesale price discrimination in the supply chain in explaining the degree of pass-through from upstream cost shocks in the ground coffee category to downstream retail prices. We do so in the German coffee market where both upstream and downstream firms make pricing decisions allowing for non linear pricing and vertical restraints. Using...
Tipo: Working Paper
Palavras-chave: Non Linear Pricing; Multiple Manufacturers and Retailers; Ground Coffee; Pass-Through; Resale Price Maintenance; Wholesale Price Discrimination; Consumer/Household Economics; C13; L13; L41.
Ano: 2009
URL: http://purl.umn.edu/120534

Environmental Labeling and Technology Adoption in the Presence of Strategic Interactions
Provedor de dados: 31
Autores: Konishi,   Yoshifumi.
This manuscript analyzes the effect of binary ecolabeling on the strategic competition of Cournot duopolists in environmental technology and the output market. Under binary labeling, firms' abatement technologies are not directly observable by consumers but are certified if they satisfy preset ecological standards. Given this asymmetry, I set up the regulator's problem as one of choosing a technology standard, or "cutoff," in emissions per unit of output, below which all abatement efficiency levels are certified. The regulatory authority faces a trade-off in choosing the socially optimal cutoff: The regulator would like to raise the standard to reduce emissions but needs to lower it in order to induce technology adoption. There are three important...
Tipo: Conference Paper or Presentation
Palavras-chave: Ecolabeling; Emissions; Product differentiation; Technology adoption; Environmental Economics and Policy; Industrial Organization; D43; L13; Q53; Q58.
Ano: 2007
URL: http://purl.umn.edu/9949

Pricing to Market, (Seasonal) Cointegration and US Agricultural Exports
Provedor de dados: 31
Autores: Xu,   Yun; Sheldon,   Ian M.
In this paper, we examine whether US exporters of agricultural commodities price to market.  Specifically, we estimate the fixed-effects model of Knetter (1989; 1995), and alternative specifications based on the use of cost indices, and seasonal and vector error correction models that account for the time-series properties of the data.
Tipo: Conference Paper or Presentation
Palavras-chave: Pricing to market; Cointegration; US agricultural exports; International Relations/Trade; F12; L13.
Ano: 2005
URL: http://purl.umn.edu/19377

Should Europe Further Strengthen Intellectual Property for Plant  Breeders? An Analysis of Seed Industry Proposals
Provedor de dados: 31
Autores: Eaton,   Derek J.F.; van Tongeren,   Frank W.
This paper illustrates the potential negative effects of increasing the scope of plant breeders' rights (PBR) protection, as has been proposed for Europe by leading plant breeding firms. Such a policy could increase the costs for varietal development for breeding companies, particularly if their access to varieties of the market leader is constrained. This is represented as an  asymmetrical increase in breeders' cost functions in a simple model of endogenous quality choice under price competition. Increased scope of IPR protection leads to increased profits for the leading breeding company but decreases in varietal quality and both farm and overall profits.
Tipo: Conference Paper or Presentation
Palavras-chave: Intellectual property rights; Product differentiation; Plant breeding; Genetic diversity; Research and Development/Tech Change/Emerging Technologies; L13; O34; Q16.
Ano: 2005
URL: http://purl.umn.edu/24725

On Pricing and Vertical Organization of Differentiated Products: The Case of Soybean Seed Industry
Provedor de dados: 31
Autores: Shi,   Guanming; Chavas,   Jean-Paul.
This paper investigates the pricing and vertical organization of differentiated products under imperfect competition. In a multiproduct context, a Cournot model is used to examine how substitution/complementarity relationships among products and vertical structures can affect the exercise of market power. This motivates a generalization of the Herfindahl-Hirschman index (termed VHHI) capturing how market concentration and vertical structures interact to influence prices of differentiated products. The analysis is applied to pricing of soybean seeds in the US over the period 2000-2007. The analysis considers two vertical structures employed by biotech firms: vertical integration and licensing. The econometric analysis finds evidence that vertical...
Tipo: Conference Paper or Presentation
Palavras-chave: Vertical structures; Pricing; Imperfect competition; Seed; Biotechnology; Demand and Price Analysis; Industrial Organization; L13; L4; L65.
Ano: 2009
URL: http://purl.umn.edu/49186

Coordinating on Reducing Advertising: Carbonated Soft Drinks Industry and Combating Obesity
Provedor de dados: 31
Autores: Berning,   Joshua P.; McCullough,   Michael.
Replaced with revised version of paper 06/08/11.
Tipo: Conference Paper or Presentation
Palavras-chave: Television advertising; Carbonated soft drink; Oligopoly advertising; Pulse advertising; Food Consumption/Nutrition/Food Safety; Health Economics and Policy; Industrial Organization; Marketing; I18; L13; M37.
Ano: 2011
URL: http://purl.umn.edu/103594

Initial Allocation Effects in Permit Markets with Bertrand Output Oligopoly
Provedor de dados: 31
Autores: Calford,   Evan M.; Heinzel,   Christoph; Betz,   Regina.
We analyse the efficiency effects of the initial permit allocation given to firms with market power in both permit and output market. We examine two models: a long- run model with endogenous technology and capacity choice, and a short-run model with fixed technology and capacity. In the long run, quantity pre-commitment with Bertrand competition can yield Cournot outcomes also under emissions trading. In the short run, Bertrand output competition reproduces the effects derived under Cournot competition, but displays higher pass-through profits. In a second-best setting of overallocation, a tighter emissions target tends to improve permit-market efficiency in the short run.
Tipo: Journal Article
Palavras-chave: Emissions trading; Initial permit allocation; Bertrand competition; EU ETS; Endogenous technology choice; Kreps and Scheinkman; Resource /Energy Economics and Policy; L13; Q28; D43.
Ano: 2010
URL: http://purl.umn.edu/95066

Pricing Power by Supermarket Retailers: A Ghost in the Machine?
Provedor de dados: 31
Autores: Richards,   Timothy J.; Pofahl,   Geoffrey M.
Tipo: Journal Article
Palavras-chave: Agribusiness; L13; L66; Q13.
Ano: 2010
URL: http://purl.umn.edu/94764

Do International Roaming Alliances Harm Consumers?
Provedor de dados: 31
Autores: Buhler,   Benno.
We develop a model of international roaming in which mobile network operators (MNOs) compete both on the wholesale market to sell roaming services to foreign operators and on the retail market for subscribers. The operators own a network infrastructure only in their home country. To allow their subscribers to place or receive calls abroad, they have to buy roaming services provided by foreign MNOs. We show that in absence of international alliances and capacity restrictions, competition between foreign operators would drive wholesale unit prices down to marginal costs. However, operators prefer to form international alliances in which members mutually provide roaming services at inefficiently high wholesale prices. Alliances serve as a commitment device to...
Tipo: Working or Discussion Paper
Palavras-chave: International Roaming; Vertical Relations; Regulation; Industrial Organization; D43; L13; L42; L96.
Ano: 2009
URL: http://purl.umn.edu/55292

Food safety and nutritional quality – Firms’ strategies and Public intervention
Provedor de dados: 31
Autores: Hammoudi,   Abdelhakim; Nguyen,   Huong-Hue; Soler,   Louis-Georges.
The aim of our paper is to determine the conditions under which firms tend to offer the best nutritional quality of food products, and the public regulation required to obtain this in a context where diet and nutritional status plays an important part in maintaining health and preventing disease, and with increasing pressure for public intervention on food quality in developed countries.  To this end, we develop a duopoly model where products can be horizontally (variety) and vertically (quality) differentiated. We analyze the perfect Nash equilibriums in a two period competition game where in the first stage, the firms decide simultaneously on the variety and the quality of the product to be sold and in the second stage, firms set prices. The model...
Tipo: Working or Discussion Paper
Palavras-chave: Nutritional product; Health cost; Public regulation; Vertical and horizontal differentiation.; Agricultural and Food Policy; Food Consumption/Nutrition/Food Safety; Industrial Organization; L13; L15; L51; Q18.
Ano: 2009
URL: http://purl.umn.edu/51749

Firm-Level Competition in Price and Variety
Provedor de dados: 31
Autores: Richards,   Timothy J.; Patterson,   Paul M.
Consumer product manufacturers often compete in dynamic, multi-firm oligopolies using multiple strategic tools. While existing empirical models of strategic interaction typically consider only parts of the more general problem, this paper presents a more comprehensive alternative. Marketing decision are dynamically optimal, consistent with optimal consumer choice, and responsive to rival decisions. Using a single-market case study that consists of five years of four-weekly data on ready-to-eat cereal sales, prices, and new brand introductions, we test several hypotheses regarding the nature of strategic interaction among several rival manufacturers. We find that cereal manufacturers price and introduce new brands cooperatively in the same period, but...
Tipo: Journal Article
Palavras-chave: Cereal; Differentiated products; Dynamics; Oligopoly; Product line rivalry; Strategic interaction; Demand and Price Analysis; D43; L13; L66; M31; Q13.
Ano: 2006
URL: http://purl.umn.edu/43788

Market Power and/or Efficiency: An Application to U.S. Food Processing
Provedor de dados: 31
Autores: Lopez,   Rigoberto A.; Azzam,   Azzeddine M.; Liron-Espana,   Carmen.
This article separates oligopoly-power and cost-efficiency effects of changes in industrial concentration and assesses their impact on output prices in 32 food-processing industries. Empirical results indicate that although concentration induces cost efficiency in one-third of the industries, oligopoly-power effects either dominate cost efficiency or reinforce inefficiency, resulting in higher output prices in most industries. The article also provides fresh econometric estimates of oligopoly power and economies of size for the industries in question.
Tipo: Working or Discussion Paper
Palavras-chave: Industrial concentration; Economies of scale; Industrial organization; Oligopoly power; Food processing; Agribusiness; Industrial Organization; Productivity Analysis; L00; L11; L13; L66.
Ano: 2001
URL: http://purl.umn.edu/25160

RATIONAL INCOMPATIBILITY WITH INTERNATIONAL PRODUCT STANDARDS
Provedor de dados: 31
Autores: Barrett,   Christopher B.; Yang,   Yi-Nung.
This paper considers the incentives of firms to conform to an exogenous international product standard. Product standardization enables traditional, price-based international competition.  But the existence of redesign costs or network effects creates market frictions that diminish the incentive to standardize if there already exists a different technology in an established market. This leads to multi-attribute competition between products and will generally reduce trade flows. Not only do incumbent firms using a different technology have an incentive to deviate from the international standard, but a host country government that is also concerned for the welfare of consumers who own the old technology has no incentive to enforce the international standard....
Tipo: Working or Discussion Paper
Palavras-chave: Compatibility; International standardization; Network effects; Redesign costs; Technical barriers to trade; International Relations/Trade; F02; F13; F15; L11; L13; L51.
Ano: 1999
URL: http://purl.umn.edu/14597

Innovation, Integration, and the Biotechnology Revolution in U.S. Seed Markets
Provedor de dados: 31
Autores: Stiegert,   Kyle W.; Shi,   Guanming; Chavas,   Jean-Paul.
Tipo: Journal Article
Palavras-chave: Crop Production/Industries; Research and Development/Tech Change/Emerging Technologies; L11; L13; L25.
Ano: 2010
URL: http://purl.umn.edu/94755

Certification of Origin and Brands Competition
Provedor de dados: 31
Autores: Chambolle,   Claire; Giraud-Heraud,   Eric.
We analyse the competition in quality and quantity between a foreign firm and a domestic firm. The domestic firm can belong to a certification of origin, whereas its rival uses a pure brand strategy. We will show how the certification can allow the domestic firm to position itself as a high quality producer and improve the average quality of the products offered on the market. If, however, the certified firm offers the low quality good, the certification can permit it to guarantee a higher profit than that of its competitor and to improve the consumers' surplus by favouring product standardisation.
Tipo: Conference Paper or Presentation
Palavras-chave: Certification of origin; Quality; International competition; Demand and Price Analysis; L13; F12; F14.
Ano: 2002
URL: http://purl.umn.edu/24976

Footloose Capital, Market Access, and the Geography of Regional State Aid
Provedor de dados: 31
Autores: Ottaviano,   Gianmarco I.P.
The global welfare implications of home market effects in trade models with imperfect competition are little understood. This paper proposes a simple model in which such implications can be easily analyzed. It shows an overall tendency of imperfectly competitive sectors to inefficiently cluster in locations that offer market access advantages. The more so the stronger the market power of firms as well as the intensity of increasing returns to scale and the lower the trade costs. As such features are likely to differ widely across sectors, those results provide theoretical ground to the promotion of regional policies that are also sectorspecific and not only region-specific as currently in the EU.
Tipo: Working or Discussion Paper
Palavras-chave: Economic integration; Specialization; Home market effect; Regional disparities; Regional policy; International Relations/Trade; Political Economy; F12; L13; R13.
Ano: 2001
URL: http://purl.umn.edu/26387

Market Equilibrium in the Presence of Green Consumers and Responsible Firms: A Comparative Statics Analysis
Provedor de dados: 31
Autores: Doni,   Nicola; Ricchiuti,   Giorgio.
This paper analyzes how the interaction between green consumers and responsible firms affects the market equilibrium. The main result is that a higher responsibility by both producers and consumers can have different impacts on the efficiency of the firms’ abatement activity, depending on the nature of the cleaning costs. When the abatement costs are fixed, the efficiency of the clean-up effort is always increasing in their degree of responsibility. On the other hand, when the abatement costs are variable, a higher level of responsibility may reduce social welfare. Finally, the first best allocation is never reached, even in the presence of the highest credible level of responsibility of both consumers and producers.
Tipo: Working or Discussion Paper
Palavras-chave: Green Consumers; Corporate Social Responsibility; Vertical Differentiation; Environmental Economics and Policy; D62; L13; L21.
Ano: 2011
URL: http://purl.umn.edu/102570

Assessing Time-Varying Oligopoly and Oligopsony Power in the U.S. Paper Industry
Provedor de dados: 31
Autores: Mei,   Bin; Sun,   Changyou.
The U.S. paper industry has become increasingly concentrated and therefore been suspected of imperfect competition. In this study, the new empirical industrial organization approach is employed to measure the degree of oligopoly and oligopsony power in the U.S. paper industry simultaneously. The model is estimated by iterative three-stage least squares using annual data from 1955 to 2003. The results reveal that there has been significant oligopoly and oligopsony power in the U.S. paper industry, and the oligopoly power has been consistently lower than the oligopsony power.
Tipo: Journal Article
Palavras-chave: Market power; NEIO; Three-stage least squares; Time-varying parameters; Agribusiness; Environmental Economics and Policy; Land Economics/Use; Production Economics; L13; Q23.
Ano: 2008
URL: http://purl.umn.edu/47268

Does Vertical Integration Effect Market Power?  Evidence from U.S. Food Manufacturing Industries
Provedor de dados: 31
Autores: Bhuyan,   Sanjib.
Vertical Integration
Tipo: Journal Article
Palavras-chave: Food industries; Market power; Vertical integration; Vertical merger; Crop Production/Industries; Marketing; Production Economics; L13; L22; Q13.
Ano: 2005
URL: http://purl.umn.edu/43737

Dynamic Assessment of Bertrand Oligopsony in the U.S. Cattle Procurement Market
Provedor de dados: 31
Autores: Ji,   In Bae; Chung,   Chanjin.
The new empirical industrial organization approach with the Bertrand model is employed to measure the oligopsony market power in the U.S. cattle procurement market. The assumption of price competition (Bertrand model) based on the nature of cattle production such as cattle cycle and seasonality is used and compared to quantity competition (Cournot model). The empirical results show that the oligopsony market power exists in the U.S. cattle procurement market. The cattle cycle and seasonality affect the oligopsony market power and the cattle cycle causes the change of market power. However, concentration has a negative effect on the oligopsony market power.
Tipo: Conference Paper or Presentation
Palavras-chave: Cattle cycle; Concentration; Market power; NEIO; Oligopsony; Seasonality; Agribusiness; Demand and Price Analysis; Industrial Organization; Livestock Production/Industries; Marketing; Q13; L13; L16.
Ano: 2011
URL: http://purl.umn.edu/103558

BUYER POWER THROUGH PRODUCER'S DIFFERENTIATION
Provedor de dados: 31
Autores: Chambolle,   Claire; Villas-Boas,   Sofia Berto.
This paper shows that retailers may choose to offer products differentiated in quality to consumers, not to relax downstream competition, but to improve their buyer power in the negotiation with their supplier. We consider a simple vertical industry where two producers sell products differentiated in quality to two retailers who operate in separated markets. In the game, first retailers choose which product to carry, then each retailer and her chosen producer bargain over the terms of a two-part tariff contract and retailers finally choose the quantities. When upstream production costs are convex, the share of the total profits going to the retailer would be higher if they choose to differentiate. We thus isolate the wish to differentiate as "only" due to...
Tipo: Working or Discussion Paper
Palavras-chave: Buyer Power; Product line; Differentiation; Marketing; L13; L42.
Ano: 2007
URL: http://purl.umn.edu/6866

Commodity Price Pass-Through in Differentiated Retail Food Markets
Provedor de dados: 31
Autores: Richards,   Timothy J.; Allender,   William J.; Pofahl,   Geoffrey M.
Prices for nearly all basic commodity rose at unprecedented rates throughout early 2008, only to fall nearly as fast as financial markets and global economies began to collapse.  Rising food prices in 2008 led to concerns that commodity price spikes would lead to more general food inflation, but by early 2009 interest focused more on the seeming inability of food prices to fall back down with commodity prices.  This study provides an empirical investigation into the pass-through of commodity prices to retail prices for two different types of food products: potatoes and fluid milk.  The results show that pass-through depends on the nature of the food in question, but is generally consistent with theoretical models of pricing by sellers of multiple,...
Tipo: Conference Paper or Presentation
Palavras-chave: Commodity prices; Conduct; Industrial organization; Inflation; Market power; Nested logit; Pass-through; Random parameters model; Consumer/Household Economics; Demand and Price Analysis; Industrial Organization; C35; D12; D43; L13; L41; Q13.
Ano: 2010
URL: http://purl.umn.edu/61187

Market Dynamics in Supply Chains: The Impact of Globalisation and Consolidation on Food Companies' Mark-Ups
Provedor de dados: 31
Autores: Kaditi,   Eleni A.
This paper examines whether ownership and increased competitive pressure affect food retailers’ market power, analysing whether all actors involved in the food supply chain deviate from the pricing behaviour that exists under perfect competition. A method proposed by Roeger (1995) is used to estimate price-cost margins, relaxing the assumptions of perfect competition and constant returns to scale. The obtained results show that foreign investments and consolidation have a positive and significant impact on the market power of food processors and retailers. Food processors, agricultural producers and wholesalers have lower price-cost margins than retailers, which suggests that these actors price closer to marginal costs being more concerned with maximising...
Tipo: Conference Paper or Presentation
Palavras-chave: Price-cost mark-ups; Multinational firms; Retailing; Agribusiness; F23; L13; L81.
Ano: 2011
URL: http://purl.umn.edu/114452

Grocery Retailers' Dominant Role in Evolving World Food Markets
Provedor de dados: 31
Autores: Sexton,   Richard J.
Tipo: Journal Article
Palavras-chave: Market consolidation; Food retailers; Food quality; Vertical coordination; Supermarket; Market power; Farmer welfare; Agribusiness; International Relations/Trade; Q13; L13.
Ano: 2010
URL: http://purl.umn.edu/94763

Reformulating Competition? Gasoline Content Regulation and Wholesale Gasoline Prices
Provedor de dados: 31
Autores: Brown,   Jennifer; Mansur,   Erin T.; Hastings,   Justine; Villas-Boas,   Sofia Berto.
The 1990 Clean Air Act Amendments stipulated gasoline content requirements for metropolitan areas with air pollution levels above predetermined federal thresholds. The legislation led to exogenous changes in the type of gasoline required for sale across U.S. metropolitan areas. This paper uses a panel of detailed wholesale gasoline price data to estimate the effect of gasoline content regulation on wholesale prices and price volatility. In addition, we investigate the extent to which the estimated price effects are driven by changes in the number of suppliers versus geographic segmentation resulting from regulation. We find that prices in regulated metropolitan areas increase significantly, relative to a control group, by an average of 3.6 cents per...
Tipo: Working or Discussion Paper
Palavras-chave: Demand and Price Analysis; Environmental Economics and Policy; L13; L51; Q50.
Ano: 2006
URL: http://purl.umn.edu/25038

The Effects of ITQ Management on Fishermen’s Welfare When the Processing Sector is Imperfectly Competitive
Provedor de dados: 31
Autores: McEvoy,   David M.; Brandt,   Sylvia J.; Lavoie,   Nathalie; Anders,   Sven M.
In this paper we use a general model of imperfect competition to predict welfare changes within an open-access fishery transitioning to individual transferable quota (ITQ) management. Although related research has explored the effects of market power in the harvesting sector on ITQ performance, none have considered the implications of an imperfectly competitive processing sector. This study addresses this question specifically in the context of the Atlantic herring fishery, although its implications are relevant to all fisheries with similar industry structure. Our results show that ITQs could have a negative impact on fishermen’s welfare when processors have market power and the cap on aggregate harvest is binding or becomes binding with the...
Tipo: Working or Discussion Paper
Palavras-chave: ITQ; Imperfect competition; Welfare analysis; Fisheries; Risk and Uncertainty; D43; Q22; Q28; L13.
Ano: 2007
URL: http://purl.umn.edu/7389

Market Power and Relative Price Adjustment: Evidence from the UK
Provedor de dados: 31
Autores: Morgan,   C. Wyn; McCorriston,   Steve.
Empirical studies of price transmission often suggest that imperfect pass-through may be due to market power exerted by food retailers. However, these econometric studies essentially lack any formal basis for tying the role of market power with data comprising of retail and producer prices only. We show that if market power has an effect on the farm-retail margin, this determines the specification of the cointegrating relationship. To emphasise the relevance of the tests, we focus on results relating the UK beef sector and show that market power is likely to have played a role in determining the retail-farm price margin.
Tipo: Conference Paper or Presentation
Palavras-chave: Price adjustment; Market power; Demand and Price Analysis; Q11; L13.
Ano: 2005
URL: http://purl.umn.edu/24485

Vertical relationships between Manufacturers and Retailers: Inference with Limited Data
Provedor de dados: 31
Autores: Villas-Boas,   Sofia Berto.
In this paper different models of vertical relationships between manufacturers and retailers in the supermarket industry are compared. Demand estimates are used to compute price-cost margins for retailers and manufacturers under different supply models when wholesale prices are not observed. The purpose is to identify which set of margins is compatible with the margins obtained from estimates of cost, and to select the model most consistent with the data among non-nested competing models. The models considered are: (1) a simple linear pricing model; (2) a vertically integrated model; and (3) a variety of alternative (strategic) supply scenarios that allow for collusion, non-linear pricing and strategic behavior with respect to private label products. Using...
Tipo: Working or Discussion Paper
Palavras-chave: Vertical contracts; Multiple manufacturers and retailers; Non-nested tests; Yogurt local market.; Industrial Organization; L13; L81; C12; C33.
Ano: 2005
URL: http://purl.umn.edu/25015

Retail Competition in the Milk Market in a U.S. Midwestern City
Provedor de dados: 31
Autores: Hovhannisyan,   Vardges; Gould,   Brian W.
The main goal of this manuscript is to explore the retailer conduct in the milk market in a U.S. Midwestern city, based upon a structural estimation of consumer milk demand and retailer optimality conditions. To model milk demand we rely upon the Almost Ideal Demand System, while allowing the retailer optimality conditions to cover a range of competitive scenarios from perfect competition to horizontal cartel. We employ a conjectural variation approach in the spirit of Newly Empirical Industrial Organization to study the competitive environment on the retail landscape.  We find that the retail market in question is far from being competitive, with the two major retailers being engaged in an oligopolistic competition. Furthermore, the private label milk...
Tipo: Conference Paper or Presentation
Palavras-chave: AIDS demand; Conjectural variation; Market power; Oligopolistic competition.; Demand and Price Analysis; Industrial Organization; D11; D12; D43; L13.
Ano: 2011
URL: http://purl.umn.edu/99281

Mergers Simulation and Demand Analysis for the U.S. Carbonated Soft Drink Industry
Provedor de dados: 31
Autores: Lai,   Pei-Chun; Bessler,   David A.
Replaced with revised version of paper on 09/29/09. Former title:  Mergers, Price Competition for the U.S. Carbonated Soft Drink Industry
Tipo: Conference Paper or Presentation
Palavras-chave: Distance metrics; Demand; Merger simulation; Agribusiness; Industrial Organization; Marketing; L13; C14.
Ano: 2009
URL: http://purl.umn.edu/49352

R&amp;D Appropriability and Planned Obsolescence: Empirical Evidence from Wheat Breeding in the UK (1960-1995)
Provedor de dados: 31
Autores: Rangnekar,   Dwijen.
Plant breeders face a unique appropriation problem - plants are reproducible, genetic information is heritable and seeds can be multiplied. The paper uses indicators of varietal age as a proxy for durability to examine strategies of planned obsolescence. Using wheat breeding in the UK, evidence of strategies of planned obsolescence is confirmed. This is then corroborated with evidence of tendencies towards increased proliferation of varieties on the market and breeding strategies that focus on incremental productivity improvements (i.e. increased efficiency) and narrow and limited disease resistance (i.e. reduced durability).
Tipo: Conference Paper or Presentation
Palavras-chave: Planned Obsolescence; R&amp;D appropriability; Innovation; Plant Breeding; Crop Production/Industries; L13; O31; Q10.
Ano: 2002
URL: http://purl.umn.edu/24904

Collusion and seasonality of market price - A case of fixed market shares
Provedor de dados: 31
Autores: Bejger,   Sylwester.
The paper develops a simple supergame model of collusion that focuses on the role of fixed (exogenous to game played) system of quantity market shares. Conclusions implied by the model could be used to motivate data - saving markers of collusion based on market price behavior. Following conclusions of the theoretical model we propose marker of collusion based on detecting changes in seasonal parameters of prices in periods of possible collusion. An empirical application of method has been done on well known data of Lysine cartel case.
Tipo: Journal Article
Palavras-chave: Collusion; Repeated games; Fixed market shares; Seasonality of market price; Financial Economics; L11; L13; L41.
Ano: 2010
URL: http://purl.umn.edu/95962

THE LIBERALIZATION OF TARIFF RATE QUOTAS UNDER OLIGOPOLISTIC COMPETITION
Provedor de dados: 31
Autores: Scoppola,   Margherita.
Paper removed by author for revision 12/09/08.
Tipo: Conference Paper or Presentation
Palavras-chave: Tariff Rate Quotas; Oligopoly; Trade Liberalization.; Agricultural and Food Policy; Industrial Organization; International Relations/Trade; Q18; F13; L13.
Ano: 2008
URL: http://purl.umn.edu/44822

Poder de mercado das exportações de farelo de soja: uma análise via demanda residual
Provedor de dados: 31
Autores: Coronel,   Daniel Arruda; Amorim,   Airton Lopes; Braga,   Marcelo Jose; Campos,   Antonio Carvalho.
The objective of this paper was to verify the market power of the Argentinean, Brazilian and American exports of soymeal to the European Union, the main consumer market of this commodity. For that, the article is based on the methodology of residual demand. Using the methods Seemingly Unrelated Regression (SUR), Two-Stage Least Squares (2SLS) and Three-Stage Least Squares (3SLS), the results indicated that, though this segment is concentrated by Argentina, Brazil and the United States, none of these countries presented market power for soymeal exports. In other words, they are not able to change soymeal prices without to decrease the exports
Tipo: Working or Discussion Paper
Palavras-chave: Market Power; International Trade; Soymeal; Residual Demand; Industrial Organization; International Relations/Trade; F12; L13.
Ano: 2010
URL: http://purl.umn.edu/114462

Strategic Vertical Pricing in the U.S. Butter Market
Provedor de dados: 31
Autores: Du,   Ying; Stiegert,   Kyle W.
This article develops a methodology for empirically analyzing vertically strategic interactions in a multi-level supply channel. The model is used to analyze the vertical channel for U.S. butter manufacturing and retailing.  Aggregating products to the firm level and using a nonlinear AIDS demand system under alternative strategic pricing assumptions is estimated using full information maximum likelihood (FIML) for seven geographic markets from 1998-2002.  The market demand for butter was found to very price elastic.  Furthermore, cross price elasticities between private labels and the two large national brands were also very elastic. The selected market structure was one indicating category profit maximization of national brands (separate from private...
Tipo: Conference Paper or Presentation
Palavras-chave: Vertical interaction; Market structure; Strategic pricing; Market power; AIDS model; Butter.; Agribusiness; Agricultural and Food Policy; Consumer/Household Economics; Demand and Price Analysis; Industrial Organization; L13; L22; L66.
Ano: 2009
URL: http://purl.umn.edu/51712

Optimal Emission Tax with Endogenous Location Choice of Duopolistic Firms
Provedor de dados: 31
Autores: Ikefuji,   Masako; Itaya,   Jun-ichi; Okamura,   Makoto.
This paper explores optimal environmental tax policy under which duopoly firms strategically choose the location of their plants in a simple three-stage game. We examine how the relationship between the optimal emission tax and the choice of location of duopoly firms affects the welfare of the home country. We characterize the relationship between the optimal emission tax and the fixed cost, depending on the degree of environmental damage from production. Finally, we show the existence of asymmetric equilibrium in which either firm chooses relocation of its plant even if the duopoly firms are identical ex ante.
Tipo: Working or Discussion Paper
Palavras-chave: Environmental Policy; Relocation; Welfare; Environmental Economics and Policy; H23; L13.
Ano: 2010
URL: http://purl.umn.edu/59377

Is Wal-Mart a Monopsony? Evidence from Local Labor Markets
Provedor de dados: 31
Autores: Bonanno,   Alessandro; Lopez,   Rigoberto A.
This paper measures the degree of monopsony power exerted by Wal-Mart over retail workers using a dominant-firm model and data in the 48 contiguous U.S. states for counties where the company operates, presenting for the first time a measure of the company’s anticompetitive behavior. Empirical results show that Wal-Mart’s monopsony power over workers varies significantly across the country, being higher in non-metro and rural counties, particularly in the south. For instance, Wal-Mart’s buying power index in labor markets in rural southern and central states is estimated to be 5% or higher while the impact on northeastern states’ retail wages is negligible.
Tipo: Conference Paper or Presentation
Palavras-chave: Wal-Mart; Monopsony power; Wages; Labor; Retailing; Community/Rural/Urban Development; Industrial Organization; Labor and Human Capital; Research Methods/ Statistical Methods; J42; L13; L81.
Ano: 2009
URL: http://purl.umn.edu/51289

Welfare Impacts of the Mexico Potato Quarantine
Provedor de dados: 31
Autores: Richards,   Timothy J.; Molina,   Ignacio; Hussein,   Osman.
Under the North American Free Trade Agreement (NAFTA) tariffs on U.S. potato imports to Mexico were phased out by 1993. Citing phytosanitary issues, in 1996, the Mexican government placed quantitative restrictions on U.S. potato imports and restricted their import only to designated border areas. This article estimates the welfare cost of restricting U.S. potato imports into Mexico. We find that removing trade restrictions may lead to over 1.8 million tons of new imports into Mexico, a gain of consumer surplus of 4.0 billion pesos per year, and a loss of 2.9 billion pesos of producer surplus.
Tipo: Journal Article
Palavras-chave: International trade; Non-tariff barriers; Potatoes; Quarantine; Sanitary and phytosanitary barriers; Welfare loss; Agribusiness; Agricultural and Food Policy; Crop Production/Industries; Environmental Economics and Policy; Food Consumption/Nutrition/Food Safety; Health Economics and Policy; International Relations/Trade; Political Economy; F13; L13; Q13; Q17; C35.
Ano: 2009
URL: http://purl.umn.edu/56661

Spying in Multi-market Oligopolies
Provedor de dados: 31
Autores: Billand,   Pascal; Bravard,   Christophe; Chakrabarti,   Subhadip; Sarangi,   Sudipta.
We consider a multimarket framework where a set of firms compete on two interrelated oligopolistic markets. Prior to competing in these markets, firms can spy on others in order to increase the quality of their product. We characterize the equilibrium espionage networks and networks that maximize social welfare under the most interesting scenario of diseconomies of scope. We find that in some situations firms may refrain from spying even if it is costless. Moreover, even though spying leads to increased product quality, there exist situations where it is detrimental to both consumer welfare and social welfare.
Tipo: Working or Discussion Paper
Palavras-chave: Oligopoly; Multimarket; Networks; Environmental Economics and Policy; C70; L13; L20.
Ano: 2010
URL: http://purl.umn.edu/96632

The Impact of Mergers on the Degree of Competition in the Banking Industry
Provedor de dados: 31
Autores: Cerasi,   Vittoria; Chizzolini,   Barbara; Ivaldi,   Marc.
This paper analyses the relation between competition and concentration in the banking sector. The empirical answer is given by testing a monopolistic competition model of bank branching behaviour on individual bank data at county level (départements and provinces) in France and Italy. We propose a measure of the degree of competiveness in each local market that is function also of market structure indicators. We then use the econometric model to evaluate the impact of horizontal mergers among incumbent banks on competition and discuss when, depending on the pre-merger structure of the market and geographic distribution of branches, the merger is anti-competitive. The paper has implications for competition policy as it suggests an applied tool to evaluate...
Tipo: Working or Discussion Paper
Palavras-chave: Banking Industry; Competition and Market Structure; Merger Policy; Financial Economics; G21; L13; L59.
Ano: 2010
URL: http://purl.umn.edu/92911

Tariffication of Tariff Rate Quotas under oligopolistic competition: the case of the EU import regimes for bananas
Provedor de dados: 31
Autores: Scoppola,   Margherita.
The paper develops a two-stage capacity constrained duopoly model, in which the mode of competition is endogenous and the constraint is flexible, to investigate the impact of Tariff Rate Quotas (TRQs) and their liberalization. The model predicts that the greater the gap between the price of the licences plus the in-quota tariff and the out-of-quota tariff, the closer the outcome of the game to the pure Cournot outcome. The tariff equivalent changes according to the prevailing mode of competition under the TRQ. The model is used to address the issue of the tariffication of the non-ACP TRQ for EU banana imports. The results suggest that under the TRQ firms competed on quantity and that the tariff equivalent is higher than the tariff introduced by the EU in...
Tipo: Working or Discussion Paper
Palavras-chave: Tariff rate quota; Oligopoly; Bananas; Agricultural and Food Policy; Q18; F13; L13.
Ano: 2009
URL: http://purl.umn.edu/115419

Measuring the Intensity of Competition in the Japanese Beef Market
Provedor de dados: 31
Autores: Reed,   Michael R.; Saghaian,   Sayed H.
A residual demand model for beef exports to Japan is specified and estimated. The objective is to estimate the extent of market power. It is assumed that each exporting country faces a downward-sloping residual demand curve, which reflects the market demand minus the supplies of competitors, and that exporters maximize profit through their output decisions. The analysis is disaggregated by beef cut and form to capture the variation by beef market segments. The results indicate that the highest markup of price over marginal cost belongs to U.S. frozen ribs, the only indication of market power by U.S. exporters. Canada is found to have limited market power, whereas Australia and New Zealand enjoy some market power, including five chilled beef categories.
Tipo: Journal Article
Palavras-chave: Beef; Japan; Market power; Market share; Residual demand; F12; L13; Q17.
Ano: 2004
URL: http://purl.umn.edu/42942

Vertical Restraints and Horizontal Control
Provedor de dados: 31
Autores: Hamilton,   Stephen F.; Innes,   Robert.
This paper considers vertical restraints in a multi-market retail setting in which each retailer sells the complete line of manufactured goods.  Vertical restraints by one manufacturer on the retailers of its product serve as an instrument to exert horizontal control over the retail price of a rival manufactured good.  Applications are developed for supermarket retailing, where the manufacturer of a national brand sold at both supermarkets can employ vertical restraints to control the pricing of the retailer’'s competing private labels, and for the personal computer industry, where the manufacturer of an essential computer component can use vertical restraints to control the pricing of complementary components bundled with the essential component by...
Tipo: Conference Paper or Presentation
Palavras-chave: Contracting; Vertical restraints; Monopolization.; Marketing; L13; L14; L42; D43.
Ano: 2006
URL: http://purl.umn.edu/21424

Price Discrimination and Market Power in Export Markets: The Case of the Ceramic Tile Industry
Provedor de dados: 31
Autores: 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

Two-Part Tariffs versus Linear Pricing Between Manufacturers and Retailers: Empirical Tests on Differentiated Products Markets
Provedor de dados: 31
Autores: Bonnet,   Céline; Dubois,   Pierre; Simioni,   Michel.
We present a methodology allowing to introduce manufacturers and retailers vertical contracting in their pricing strategies on a differentiated product market. We consider in particular two types of non linear pricing relationships, one where resale price maintenance is used with two part tariffs contracts and one where no resale price maintenance is allowed in two part tariffs contracts. Our contribution allows to recover price-cost margins from estimates of demand parameters both under linear pricing models and two part tariffs. The methodology allows then to test between different hypothesis on the contracting and pricing relationships between manufacturers and retailers in the supermarket industry using exogenous variables supposed to shift the...
Tipo: Conference Paper or Presentation
Palavras-chave: Vertical contracts; Two part tariffs; Double marginalization; Collusion; Competition; Manufacturers; Retailers; Differentiated products; Water; Non nested tests; Industrial Organization; L13; L81; C12; C33.
Ano: 2006
URL: http://purl.umn.edu/25685

An Analysis of Pricing in the U.S. Cotton Seed Market
Provedor de dados: 31
Autores: Shi,   Guanming; Stiegert,   Kyle W.; Chavas,   Jean-Paul.
The purpose of the research in this paper is to investigate the impact of differentiated vertical strategies by agricultural biotechnology firms in the U.S. cottonseed market. The model advances the measurement of industry concentration to consider substitution/complementarity relationships among differentiated products delivered under different vertical structures. We find evidence of sub-additive pricing in the stacking of bundled biotech traits. Prices paid by farmers for cottonseed sold under vertical integration are found to be higher than under licensing. The model is flexible and allows for evaluation of the effects of changing market structures. The parameters on traditional measures of concentration indicate that higher concentration leads to...
Tipo: Conference Paper or Presentation
Palavras-chave: Modal Vertical Strategy; Imperfect competition; Cotton seed; Biotechnology; Agricultural and Food Policy; Demand and Price Analysis; Industrial Organization; L13; L4; L65.
Ano: 2009
URL: http://purl.umn.edu/51617

Wal-Mart, Oligopsony Power and Entry: an Analysis of Local Labor Markets
Provedor de dados: 31
Autores: Bonanno,   Alessandro.
Wal-Mart, the largest retailer worldwide, has been suspected of exercising market power over input providers, both merchandise suppliers and workers. However, in spite of a growing body of literature investigating the beneficial economic impact of the company through its price-lowering effect, research analyzing the company’s economic impact over input suppliers is limited. This paper presents a general framework which can be used to investigate Wal-Mart’s market power over input suppliers, vis-à-vis a variation in input productivity, focusing on homogenous intermediate goods supplied locally. The model is general enough to account for incumbents’ reaction to Wal-Mart’s entry resulting in exit, entry and changes in the production technology. A simplified...
Tipo: Conference Paper or Presentation
Palavras-chave: Wal-Mart; Oligopsony power; Entry; Wages; Industrial Organization; Labor and Human Capital; L13; L81; J42.
Ano: 2009
URL: http://purl.umn.edu/49599

Deficiency Payments and Market Power: Effects of Imperfect Competition on Welfare Distribution and Decoupling
Provedor de dados: 31
Autores: Russo,   Carlo.
Despite the increasing importance of market power in the food industry, most policy models assume perfect competition. Ignoring market power may lead economists to make incorrect, or at least misleading, policy recommendations. In this paper I develop a theoretical model in which market power can alter conclusions regarding the welfare effects of a specific policy change: replacing deficiency payments with decoupled payments to farmers, and apply it to the U.S. wheat market and milling industry.  The main conclusions of the theoretical model are that, middlemen’s market power may cause i) an increase in public expenditure, ii) an extraction of policy rents from the taxpayers by the middlemen, and iii) a reduction of the social benefit from decoupling...
Tipo: Conference Paper or Presentation
Palavras-chave: Decoupling; Deficiency Payments; Market Power; Financial Economics; Q18; L13.
Ano: 2007
URL: http://purl.umn.edu/9767

Civil Liability, Safety and Nuclear Parks: Is Concentrated Management Better?
Provedor de dados: 31
Autores: Mondello,   Gerard.
Ultra-hazardous risky activities as nuclear industry cannot be considered as “normal industries” i.e. industries without abnormal environmental and health risks. Consequently, the industrial organization of these specific sectors is of the utmost importance. This paper aims at studying this question. We focus on the associated costs of prevention and civil liability. We analyze how civil liability rules may contribute to extend or to discourage the expansion of nuclear parks to new operators. The paper compares the consequences of extending the management of nuclear stations to several independent operators. This question can apply to the unification process of the European electricity market in which several public and private nuclear power operators are...
Tipo: Working or Discussion Paper
Palavras-chave: Strict Liability; Electric Energy; Nuclear Plants; Resource /Energy Economics and Policy; Q5; Q58; Q53; K23; L13; L52; L94.
Ano: 2011
URL: http://purl.umn.edu/102571

Imperfect Competition between Milk Manufacturers and Retailers in a Midwestern State in the U.S.
Provedor de dados: 31
Autores: Hovhannisyan,   Vardges; Stiegert,   Kyle W.
This manuscript studies the market conduct of the milk manufacturers and retail chains in a Midwestern state in the U.S. Following the menu approach we employ a random coefficient logit demand model to investigate several possible scenarios on the supply side. Demand estimates are obtained using both cross-sectional and time series variation in data. We also allow annual variation in consumer demographics which helps identify the coefficients of interaction between consumer demographics and product characteristics. To further enhance identification power we allow choice set of milk to vary across markets.  The results are most supportive of the conjecture that manufacturers behave competitively letting the retailers be the residual claimants. Later they...
Tipo: Conference Paper or Presentation
Palavras-chave: Market conduct; Random coefficient logit; Vertical chain; Imperfect competition; Agribusiness; Agricultural and Food Policy; Demand and Price Analysis; Industrial Organization; D43; L13.
Ano: 2011
URL: http://purl.umn.edu/98844

Vertical Differentiation and Credence Goods: Harmonized Labeling and Gains from International Integration
Provedor de dados: 31
Autores: Sheldon,   Ian M.; Roe,   Brian E.
Using a model of vertical product differentiation, we show under what institutional circumstances welfare gains will be maximized as economies integrate and harmonize labeling and certification policies for credence goods.  Specifically, we show that harmonized mandatory, exclusive discrete labeling will not maximize the gains from economic integration, i.e., the choice of labeling regime can have a negative effect on market structure if firms choose to exit, reducing the range and quality of goods in the integrated market.
Tipo: Conference Paper or Presentation
Palavras-chave: Vertical differentiation; Credence goods; Harmonized labeling; Economic integration; International Relations/Trade; F12; F21; L13.
Ano: 2008
URL: http://purl.umn.edu/6340

ESTIMATING COKE AND PEPSI'S PRICE ADVERTISING STRATEGIES
Provedor de dados: 31
Autores: Golan,   Amos; Karp,   Larry S.; Perloff,   Jeffrey M.
AgEcon Search copy replaced with 1999 version 02/02/06.
Tipo: Working or Discussion Paper
Palavras-chave: Strategies; Noncooperative games; Oligopoly; Generalized maximum entropy; Beverages; Marketing; C13; C35; C72; L13; L66.
Ano: 1997
URL: http://purl.umn.edu/25057

Local Buyer Market Power and Horizontally Differentiated Manufacturers
Provedor de dados: 31
Autores: Wang,   Shinn-Shyr; Rojas,   Christian; Lavoie,   Nathalie.
In this paper we study a farmer-processor relationship, where market power is bidirectional: processors have buyer as well as seller market power. Farmers supply a homogeneous raw input to the processors, which, in turn, process it into a horizontally differentiated product. The analysis shows that the spread between prices that both parties receive can be decomposed into two components: one due to buyer market power in the agricultural input market and one due to seller market power in the differentiated processed market.  Farmers receive a decreasing dollar share of the final price as concentration in the processed good market increases. On the other hand, the price spread due to processors' buyer (seller) market power decreases (increases) when farmers'...
Tipo: Conference Paper or Presentation
Palavras-chave: Buyer market power; Horizontal differentiation; Agribusiness; Industrial Organization; Marketing; D43; L13; M31; Q13.
Ano: 2010
URL: http://purl.umn.edu/61990

Using Retail Scanner Data for Upstream Merger Analysis: Counterfactual Experiments in the Retail Coffee Market
Provedor de dados: 31
Autores: Villas-Boas,   Sofia Berto.
The typical situation faced by antitrust authorities is to analyze and rule on a proposed merger by two or more manufacturers using scanner data at retail-level in a particular industry. This paper presents a simple framework to assess merger welfare effects in markets where both upstream and downstream firms make pricing decisions. I start with a benchmark model of manufacturers’ and retailers’ sequential pricing behavior. Then using counterfactual experiments, I explore the relationship between downstream retailer pricing models and the resulting estimates of upstream mergers. This exercise is done in the absence of wholesale prices looking at scanner data for the ground coffee category sold at several retail chains in Germany. I find that not...
Tipo: Working or Discussion Paper
Palavras-chave: Merger Analysis; Vertical relationships; Multiple manufacturers and retailers; Demand and Price Analysis; C13; L13; L41.
Ano: 2007
URL: http://purl.umn.edu/7163

The Impact of Biofuels Policy on Agribusiness Stock Prices
Provedor de dados: 31
Autores: Tepe,   Fatma Sine; Du,   Xiaodong; Hennessy,   David A.
Corn markets are important for many industries. These include the seed, fertilizer, meat production/processing and agricultural machinery sectors, all of which are highly concentrated. Oligopoly theory suggests that corn input and field equipment suppliers likely benefit from policies that support corn markets, such as U.S. biofuels policy, while meat companies likely lose. This study investigates the impact of biofuels policy on U.S. agribusiness stock prices. Corn futures prices are found to have a structural change in November 2006, consistent with the expansion of U.S. biofuels policy support. A linear two-factor (S&amp;P500 and corn prices) equilibrium asset pricing model is estimated on two subsamples, one before and one after the estimated change...
Tipo: Conference Paper or Presentation
Palavras-chave: Biofuels policy; Excess stock returns; GARCH effect; Linear factor model.; Agribusiness; Agricultural and Food Policy; Agricultural Finance; D43; L13; Q14.
Ano: 2010
URL: http://purl.umn.edu/60987