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

Giraud-Heraud, Eric; Grazia, Cristina; Hammoudi, Abdelhakim.

This paper analyzes how the implementation of a food safety standard affects firms strategic behaviour within the context of a food chain. We provide a formal analysis, which considers that the sanitary risk results from a strong heterogeneity of upstream production conditions and the final demand depends on consumers risk estimations (given that consumers may underestimate or, conversely, overestimate the sanitary risk). We show how downstream (processing or retailing) firms may be prompted to play a positive role with respect to food safety, either by selecting only the safest upstream producers or by encouraging the improvement of suppliers production conditions. When the degree of consumers risk misperception is relatively low, then a downstream...

AIDS Model Estimates of Food Demand and the Decline in Farm Value Shares

Palavras-chave: Food safety standards; Market power; Risk misperception; Food Consumption/Nutrition/Food Safety.

Ano: 2007

URL: http://purl.umn.edu/7849

Reed, Albert J..

This study attempts to find empirical support for one or both of the above reasons for declining food budget shares. Estimates of a deflated-income AIDS model of food demand are compared to estimates of the corresponding nominal-income AIDS model with respect to their implications for declining farm value shares.

An Analysis of the Banana Import market in the U.S.

Palavras-chave: Consumer Food Demand; Farm value shares; Market power; Demand and Price Analysis.

Ano: 2011

URL: http://purl.umn.edu/103549

Su, Chia-Hsien; Ishdorj, Ariun; Leatham, David J..

An Antitrust Economic Analysis of Stop & Shop's Proposed Acquisition of the Big V Shop Rite Supermarket Chain

Palavras-chave: Demand; Banana; Import; Market power; Demand and Price Analysis; Food Consumption/Nutrition/Food Safety.

Ano: 2011

URL: http://purl.umn.edu/98847

Cotterill, Ronald W..

In early 2002, the Royal Ahold subsidiary, Stop & Shop Supermarkets, offered to purchase the Big V supermarket chain, which was in bankruptcy court after three successive, unsuccessful leveraged buyouts over the past ten years. At a later date, Pathmark Supermarkets joined the offer to purchase. Big V was Wakefern Food Corporations largest member. The acquisition was a horizontal merger in at least three local markets, Newburgh NJ, Poughkeepsie NY, and Trenton NJ. This research was conducted for the Wakefern Food Corporation who provided much of the underlying data and information. We presented this report to the Bureau of Competition, Federal Trade Commission in March 2002 and to the New Jersey and New York Attorney Generals, Antitrust Section in...

Antitrust Analysis of Supermarket Retailing: Common Global Concerns that Play Out in Local Markets

Palavras-chave: Horizontal merger; Market power; Predation; Agribusiness; Industrial Organization.

Ano: 2002

URL: http://purl.umn.edu/25194

Cotterill, Ronald W..

This paper reviews the basic antitrust standards for the supermarket industry including definition of product and geographic markets and the exercise of coordinated and unilateral market power. It surveys the structure-conduct-performance and the New Empirical Industrial Organization literature to highlight alternative tests for supermarket power. The focus is a supermarket chains ability to exercise buyer as well as seller power. Recent research on vertical pricing topics including noncompetitive pricing games, double marginalization, private labels, vertical foreclosure, vertical price leadership and price transmission expand the analysis to market channel pricing issues. The availability of comprehensive scanner data, new economic theory and extensive...

Assessing Market Functioning: The Case of the Hungarian Milk Chain

Palavras-chave: Market definition; Market power; Nash Bertrand conduct; Manufacturer Stackelberg conduct; Price cost margin; Market concentration; Price transmission rate; Agribusiness; Industrial Organization.

Ano: 2005

URL: http://purl.umn.edu/25184

Hockmann, Heinrich; Voneki, Eva.

The paper discusses the impact of market power in the Hungarian milk chain. In a first step a vector error correction model is estimates to assess whether a domestic market for raw milk exists. Since the answer was positive we proceed by developing a structural market model of the Hungarian market for raw milk that is able to identify a possible affect of market power on resource allocation. A nonlinear 3SLS approach was applied to estimate the supply and the demand for raw milk. The results provide that despite the high concentration of in dairy processing the indications for market poser are rather limited. The Bertrand like equilibrium can be attributed to the low degree of capacity utilization in dairy processing and the marketing alternative of...

Assessing Time-Varying Oligopoly and Oligopsony Power in the U.S. Paper Industry

Palavras-chave: Market power; Market integration; Dairy; Hungary.; Livestock Production/Industries; Marketing.

Ano: 2007

URL: http://purl.umn.edu/7805

BSE Disease Outbreaks, Structural Change and Market Power in the Canadian Beef Industry

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

Clark, J. Stephen; Cechura, Lukas; Berhanu, Adugna.

This study examines farm to wholesale prices spreads to measure the impact of the Bovine Spongiform Encephalopathy (BSE) disease outbreak on the Canadian beef industry. The study uses structure break tests developed by Gregory and Hansen (1996) and Hansen (1992) examine possible breaks within cointegrating relationships. The study finds evidence that the industry began a realignment as a result of the UK BSE disease outbreak, and the Canadian BSE disease outbreak was simply the largest realignment of the process beginning with the UK disease outbreak. However, the only statistically significant break was the BSE disease outbreak itself in May 2003. Stability was not restored until the border was reopened in 2005. Specific results indicated that the...

Collinearity in Linear Structural Models of Market Power

Palavras-chave: BSE; Market power; Canada; Beef industry; Agribusiness; Industrial Organization; International Relations/Trade.

Ano: 2011

URL: http://purl.umn.edu/114097

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.

Commodity Price Pass-Through in Differentiated Retail Food Markets

Palavras-chave: Market power; Estimation; Demand and Price Analysis; Industrial Organization; L13; C1.

Ano: 2001

URL: http://purl.umn.edu/25012

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,...

Competitive Analysis and Market Power of China’s Soybean Import Market

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

Song, Baohui; Marchant, Mary A.; Reed, Michael R.; Xu, Shuang.

This research conducts a competitive structure analysis of the Chinese soybean import market which leads to the hypothesis that China’s soybean importers may have stronger market power in China’s soybean import market. Then, this research develops and simultaneously estimates a two-country partial equilibrium trade model to test U.S.-China market power of soybean trade. The empirical result supports our hypothesis that Chinese soybean importers have stronger market power relative to U.S. soybean exporters. This Chinese market power can be countered by U.S. and South American companies through developing new and expanding existing markets for soybeans throughout the world and investing in Chinese soybean storage and crushing capacity.

Tipo: Journal Article

Palavras-chave: Chinese soybean import market; Competitive structure analysis; Market power; Two-country partial equilibrium trade model; International Relations/Trade; Marketing; Research Methods/ Statistical Methods; Q10; Q12; Q17.

Ano: 2009

URL: http://purl.umn.edu/53744

COMPETITIVE BEHAVIOR IN THE FOOD RETAILING INDUSTRY

Park, Timothy A.; Weliwita, Ananda.

We develop a flexible model to examine competitive conditions in the food retailing industry based on the Box-Cox transformation of the demand and industry equilibrium conditions. The impact of key technological and market developments on shifts in the competitive index is examined. Adoption of optical scanning technology was positively related to the market power index but the index was stable and consistent with competitive conditions over the 1982-1992 period.

Concentração de mercado e poder de monopsônio na indústria brasileira de esmagamento de soja

Palavras-chave: Market power; Food retailing; Box-Cox model; Technological innovations; Agribusiness; Industrial Organization.

Ano: 1996

URL: http://purl.umn.edu/16680

Carvalho, Lucineia Hipolito de; Aguiar, Danilo Rolim Dias de.

This study aims to analyze the impacts of changes in the structure of the Brazilian soybean crushing industry on the performance of the soybeans complex. It was verified that the trend of concentration in the soybean crushing industry, which had already been verified by previous paper carried out in the decade of 1990, intensified in the beginning of the decade of 2000. The results regarding market power gave support to the hypothesis of monopsony power usage in the purchases of soybeans from the farmers. The results suggest that the crushing firms have had the ability to use market power against soybean farmers. However, the fact that the use of market power has been restricted in the markets where there is excess capacity suggests that the use of market...

Tipo: Journal Article

Palavras-chave: Industrial Organization; Market power; Market concentration; Soybean industry.

Ano: 2005

URL: http://purl.umn.edu/56728

CONCENTRATION AND TECHNOLOGY IN AGRICULTURAL INPUT INDUSTRIES

Consequences of BSE disease outbreaks in the Canadian beef industry

King, John L..

Consolidation in the agricultural biotechnology industry can both enhance and dampen market competition. This report examines the causes and consequences of industry consolidation and its effect on market efficiency. In some cases, concentration realizes economies of scale, which can improve market efficiency by driving down production costs. The protection of intellectual property rights is integral to the agricultural biotechnology marketplace, stimulating research and development, investment, and the development of substitute markets. However, excessively broad intellectual property rights can hinder the market for innovation. Recent data on mergers, acquisitions, and strategic collaborations in the agricultural biotechnology industry, as well as the...

Tipo: Report

Palavras-chave: Industry concentration; Consolidation; Biotechnology; Market efficiency; Market power; Intellectual property rights; Agricultural input industries; Mergers; Acquisitions; Agribusiness; Industrial Organization.

Ano: 2001

URL: http://purl.umn.edu/33631

Stephen Clark, J.; Cechura, Lukas.

This study examines farm to wholesale prices spreads to measure the impact of the BSE disease outbreak on the Canadian beef industry. The study uses structure break tests developed by Gregory and Hansen (1996) and Hansen (1992) examine possible breaks within co integrating relationships. The study finds evidence that the industry began realignment as a result of the UK BSE disease outbreak, and the Canadian BSE disease outbreak was simply the largest realignment of the process beginning with the UK disease outbreak. However, the only statistically significant break was the BSE disease outbreak itself in May 2003. Stability was not restored until the border was reopened in 2005. Specific results indicated that the processing sector exploited the border...

Tipo: Journal Article

Palavras-chave: Beef industry; Price transmission; BSE; Market power; Parameter instability; Cointegration with structural break; Agribusiness; Agricultural and Food Policy; Agricultural Finance; GA; IN.

Ano: 2011

URL: http://purl.umn.edu/102490

Consumption Inertia and Asymmetric Price Transmission

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

Xia, Tian; Li, Xianghong.

We propose consumption inertia as a new explanation for asymmetric price transmission. Inertia in consumer demand enlarges retailers’ gains in gross profits from raising prices in response to higher wholesale prices and reduces gains from decreasing prices in response to lower wholesale prices. Thus, consumption inertia can cause asymmetries in price transmission whereby retailers are more willing to change their prices, and change them more quickly, in response to wholesale price increases as opposed to wholesale price decreases.

Tipo: Journal Article

Palavras-chave: Asymmetric price transmission; Consumption inertia; Market power; Retail pricing; Demand and Price Analysis.

Ano: 2010

URL: http://purl.umn.edu/93210

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.

Does Vertical Integration Effect Market Power? Evidence from U.S. Food Manufacturing Industries

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

Ano: 1998

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

Dynamic Assessment of Bertrand Oligopsony in the U.S. Cattle Procurement Market

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

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.

Dynamic Assessment of Oligopoly, Oligopsony Power, and Cost Efficiency using the New Empirical Industrial Organization in the U.S. Beef Packing Industry

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

Ji, In Bae; Chung, Chanjin.

In this paper, the new empirical industrial organization approach with a dynamic model is simultaneously employed to measure the degree of oligopoly, oligopsony power, and cost efficiency in the U.S. beef packing industry. The oligopsony power is estimated with two effects: cash cattle procurement market power and captive supply market power. The model is estimated by the Generalized Method of Moments using monthly data from 1990 to 2006. The empirical results reveal the presence of market power in both the beef retail market and the cattle procurement market in the sample period. The captive supply is a source of oligopsony market power, but the effect is considerably small. The oligopsony market power is greater and less stable than oligopoly market...