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Firm-level Forces Underlying Concentration in Agriculture

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Author Info
Mussell, Al
Martin, Larry
Abstract

Although industry concentration in agriculture has a long history, the analysis of concentration and normative recommendations on it are a source of ongoing controversy in agricultural economics. The received approaches to the study of industry concentration are based on the structure-conduct-performance model or on the “new†empirical industrial organization literature which explicitly models competitive behaviour. However, each of these approaches wants for analysis of the specific firm-level decision processes that produce its predicted outcome. An alternative approach is to analyze the internal motivations for vertical and horizontal integration that exist within firms and that ultimately result in market concentration. From this perspective, market concentration results from more than simply competition among firms for economic rents.

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Publisher Info
Article provided by Canadian Agricultural Economics Society in its journal CAFRI: Current Agriculture, Food and Resource Issues.

Volume (Year): (2003)
Issue (Month): 04 ()
Pages:
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Handle: RePEc:ags:cafric:45729

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Web page: http://caes.usask.ca/papers/cafri/index.php
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Keywords: Environmental Economics and Policy;

References listed on IDEAS
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  1. Hueth, Brent & Ligon, Ethan, 2002. "Producer Price Risk and Quality Measurement," Staff General Research Papers 5037, Iowa State University, Department of Economics.
  2. Klein, Benjamin & Crawford, Robert G & Alchian, Armen A, 1978. "Vertical Integration, Appropriable Rents, and the Competitive Contracting Process," Journal of Law & Economics, University of Chicago Press, vol. 21(2), pages 297-326, October.
  3. Hart, Oliver & Moore, John, 1990. "Property Rights and the Nature of the Firm," Journal of Political Economy, University of Chicago Press, vol. 98(6), pages 1119-58, December. [Downloadable!] (restricted)
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  4. Hart, Oliver D & Moore, John, 1988. "Incomplete Contracts and Renegotiation," Econometrica, Econometric Society, vol. 56(4), pages 755-85, July. [Downloadable!] (restricted)
    Other versions:
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This page was last updated on 2009-12-11.


This information is provided to you by IDEAS at the Department of Economics, College of Liberal Arts and Sciences, University of Connecticut using RePEc data on a server sponsored by the Society for Economic Dynamics.