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On Pricing and Vertical Organization of Differentiated Products: The Case of Soybean Seed Industry AgEcon
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
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Competition Issues in the Seed Industry and the Role of Intellectual Property AgEcon
Moschini, GianCarlo.
Tipo: Journal Article Palavras-chave: Crop Production/Industries; Research and Development/Tech Change/Emerging Technologies; L1; L4; O3; Q1.
Ano: 2010 URL: http://purl.umn.edu/94757
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An Analysis of Pricing in the U.S. Cotton Seed Market AgEcon
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
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