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Cooperative vs. Non-Cooperative Spatial Competition for Milk in the Presence of Farm Marketing Cooperatives AgEcon
Graubner, Marten; Koller, Ines; Salhofer, Klaus; Balmann, Alfons.
Although important, the spatial dimension is often neglected in studies of market power and competition in agricultural markets. This paper investigates spatial competition for raw milk between dairies under the presence of marketing cooperatives. Since observed in reality, our model is based on uniform delivered pricing and overlapping market areas. We compare spatial cooperative price matching with non-cooperative Hotelling-Smithies conduct. Utilizing a vector error correction model we show that the observed low price transmission in Germany is in line with cooperative behaviour. This seems rational since it increases processors profits. The abolition of the quota system may increase price transmission.
Tipo: Conference Paper or Presentation Palavras-chave: Spatial competition; Uniform delivered pricing; Price transmission; Horizontal cooperation; VECM; Marketing.
Ano: 2009 URL: http://purl.umn.edu/58021
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Location and Spatial Pricing in Agricultural Markets AgEcon
Graubner, Marten; Balmann, Alfons; Sexton, Richard J..
Agricultural markets often feature significant transport costs and spatially distributed production and processing which causes spatial imperfect competition. Spatial economics considers the firms’ decisions regarding location and spatial price strategy separately, usually on the demand side, and under restrictive assumptions. Therefore, alternative approaches are needed to explain, e.g., the location of new ethanol plants in the U.S. at peripheral as well as at central locations and the observation of different spatial price strategies in the market. We use an agent-based simulation model to analyze location and spatial pricing in a general model under multi-firm competition, two-dimensional space, and a continuum of potential price strategies. The...
Tipo: Conference Paper or Presentation Palavras-chave: Spatial competition; Location; Price discrimination; Oligopsony; Simulation; Industrial Organization; Research Methods/ Statistical Methods; C63; Q11; R32.
Ano: 2010 URL: http://purl.umn.edu/61225
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Spatial Pricing and the Location of Processors in Agricultural Markets AgEcon
Graubner, Marten; Balmann, Alfons; Sexton, Richard J..
Spatially dispersed production and processing, endemic for most agricultural or renewable resource markets, causes oligopsonistic competition. The possibility and use of spatial price discrimination in these markets is well documented. It is also well known that the location of processors relative to competitors crucially affects the intensity of competition. However, insights regarding the relation between spatial price discrimination and the spatial differentiation of firms are barely present because the simultaneous investigation of these issues is often intractable analytically. We use computational economics to study these problems under a general theoretical framework. For instance, we show whether and under which conditions firms choose to...
Tipo: Conference Paper or Presentation Palavras-chave: Spatial price competition; Spatial differentiation; Price discrimination; Computational economics; Agribusiness.
Ano: 2011 URL: http://purl.umn.edu/114601
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The Spatial Agent-based Competition Model (SpAbCoM) AgEcon
Graubner, Marten.
The paper presents a detailed documentation of the underlying concepts and methods of the Spatial Agent-based Competition Model (SpAbCoM). For instance, SpAbCoM is used to study firms’ choices of spatial pricing policy (GRAUBNER et al., 2011a) or pricing and location under a framework of multi-firm spatial competition and two-dimensional markets (GRAUBNER et al., 2011b). While the simulation model is briefly introduced by means of relevant examples within the corresponding papers, the present paper serves two objectives. First, it presents a detailed discussion of the computational concepts that are used, particularly with respect to genetic algorithms (GAs). Second, it documents SpAbCoM and provides an overview of the structure of the simulation model and...
Tipo: Working or Discussion Paper Palavras-chave: Agent-based modelling; Genetic algorithms; Spatial pricing; Location model; Agent-basierte Modellierung; Genetische Algorithmen; Räumliche Preissetzung; Standortmodell; Agribusiness; Agricultural Finance; Demand and Price Analysis; Y90.
Ano: 2011 URL: http://purl.umn.edu/109915
Registros recuperados: 4
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