Testing Market Power and Welfare Effects in the US Catfish Industry-Reference-Cited by-同舟云学术

Testing Market Power and Welfare Effects in the US Catfish Industry

Published:2020-02-05 Issue:0 Volume:0 Page:
ISSN:1542-0485
Container-title:Journal of Agricultural & Food Industrial Organization
language:en
Short-container-title:

Author:

Nguyen Giap V.¹,Jolly Curtis M.²,Nguyen Thong T.³

Affiliation:

1. University of Economics Ho Chi Minh City , School of Government , 59C Nguyen Dinh Chieu Str., District 3 Ho Chi Minh city , Viet Nam

2. Department of Agricultural Economics and Rural Sociology , Auburn University , Auburn , Alabama , USA

3. Syntesa Associates & Partners , Copenhagen , Denmark

Abstract

Abstract An empirical specification of the conjectural variations model, which conforms to microeconomic theory, is estimated for the US catfish industry. We find the existence of market power exerted by US catfish processors. Processors force the price paid to catfish growers down by 52.88 cent per pound of live catfish, which costs US catfish growers about $300 million a year. US catfish growers can deter the negative effects of processors’ market power by increasing their farm supply flexibility. Further studies are needed to address the dynamics and competitive game strategies in the US catfish industry.

Publisher

Walter de Gruyter GmbH

Subject

General Business, Management and Accounting,Food Science

Link

https://www.degruyter.com/document/doi/10.1515/jafio-2019-0025/pdf

Reference46 articles.

1. Amemiya, T. 1977. “The Maximum Likelihood and the Nonlinear Three Stage Least Squares Estimator in the General Nonlinear Simultaneous Equation Model.” Econometrica 45: 955–68.

2. Applebaum, E. 1982. “The Estimation of the Degree of Oligopoly Power.” Journal of Econometrics 19 (2-3): 287–99.

3. Azzam, A. M. 1992. “Testing the Competitiveness of Food Price Spreads.” Journal of Agricultural Economics 42: 248–56.

4. Azzam, A. M. 1997. “Measuring Market Power and Cost-efficiency Effects of Industrial Concentration.” Journal of Industrial Economics 34: 377–86.

5. Azzam, A. M., and G. Anderson. 1996. Assessing Competition in Meat Packing: Economic History, Theory and Evidence. Washington, DC: Grain Inspection, Packers and Stockyards Administration.