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Markets: Ready-Mixed Concrete

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  • Chad Syverson

Abstract

Concrete's natural color is gray. Its favored uses are utilitarian. Its very ubiquity causes it to blend into the background. But ready-mix concrete does have one remarkable characteristic: other than manufactured ice, perhaps no other manufacturing industry faces greater transport barriers. The transportation problem arises because ready-mix concrete both has a low value-to-weight ratio and is highly perishable -- it absolutely must be discharged from the truck before it hardens. These transportation barriers mean ready-mixed concrete must be produced near its customers. For the same reason, foreign trade in ready-mixed concrete is essentially nonexistent. This article is an introduction to the basics of the market for ready-mix concrete, focusing mainly on its consumers and its producers in the United States, but with occasional comparisons to other countries when contrasts are useful.

Suggested Citation

  • Chad Syverson, 2008. "Markets: Ready-Mixed Concrete," Journal of Economic Perspectives, American Economic Association, vol. 22(1), pages 217-234, Winter.
    • Handle: RePEc:aea:jecper:v:22:y:2008:i:1:p:217-234
    Note: DOI: 10.1257/jep.22.1.217
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    References listed on IDEAS

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    1. Ali Hortaçsu & Chad Syverson, 2007. "Cementing Relationships: Vertical Integration, Foreclosure, Productivity, and Prices," Journal of Political Economy, University of Chicago Press, vol. 115(2), pages 250-301.
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    10. Walter Beckert, 2018. "An Empirical Analysis of Countervailing Power in Business-to-Business Bargaining," Review of Industrial Organization, Springer;The Industrial Organization Society, vol. 52(3), pages 369-402, May.
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    12. Matthew Backus, 2020. "Why Is Productivity Correlated With Competition?," Econometrica, Econometric Society, vol. 88(6), pages 2415-2444, November.
    13. Robert Kulick, 2017. "Ready-to-Mix: Horizontal Mergers, Prices, and Productivity," Working Papers 17-38, Center for Economic Studies, U.S. Census Bureau.
    14. Schiersch Alexander & Schmidt-Ehmcke Jens, 2011. "Is the Boone-Indicator Applicable? – Evidence from a Combined Data Set of German Manufacturing Enterprises," Journal of Economics and Statistics (Jahrbuecher fuer Nationaloekonomie und Statistik), De Gruyter, vol. 231(3), pages 336-357, June.
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    17. Hyunbae Chun & Hailey Hayeon Joo & Jisoo Kang & Soo Hyung Kim, 2023. "Protecting Small-Scale Enterprises: Evidence from the Korean Ready-Mixed Concrete Industry," Review of Industrial Organization, Springer;The Industrial Organization Society, vol. 63(1), pages 73-95, August.
    18. Suveg, Melinda, 2021. "Does Firm Exit Increase Prices?," Working Paper Series 1414, Research Institute of Industrial Economics.
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    20. Jia-Bei Yu & Yang Yu & Lin-Na Wang & Ze Yuan & Xu Ji, 2016. "The knowledge modeling system of ready-mixed concrete enterprise and artificial intelligence with ANN-GA for manufacturing production," Journal of Intelligent Manufacturing, Springer, vol. 27(4), pages 905-914, August.

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