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Price or Quantity Competition? Oligopolistic Structures in International Commodity Markets

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Author Info
Carter, Colin A
MacLaren, Donald

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Abstract

International commodity markets may be characterized by price or quantity competition and by product differentiation. As an illustration, this paper presents a set of models of the Japanese market for imported beef. The models are evaluated using a non-nested econometric test. The one which best fits the data is a Stackelberg model with price leadership by Australia. This result provides evidence on the explicit nature of the game being played by exporters, unlike the applied conjectural variations approach which provides only an index of how competitive the market is. Copyright 1997 by Blackwell Publishing Ltd.

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Publisher Info
Article provided by Blackwell Publishing in its journal Review of International Economics.

Volume (Year): 5 (1997)
Issue (Month): 3 (August)
Pages: 373-85
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Handle: RePEc:bla:reviec:v:5:y:1997:i:3:p:373-85

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Web page: http://www.blackwellpublishing.com/journal.asp?ref=0965-7576

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  1. Jeffrey Reimer & Kyle Stiegert, 2006. "Imperfect Competition and Strategic Trade Theory: Evidence for International Food and Agricultural Markets," Journal of Agricultural & Food Industrial Organization, Berkeley Electronic Press, vol. 4(1), pages 1134-1134. [Downloadable!] (restricted)
  2. Colin Carter & Donald MacLaren & Alper Yilmaz, 1999. "How Competitive is the World Wheat Market?," Department of Agricultural & Resource Economics, UC Davis, Working Paper Series 1043, Department of Agricultural & Resource Economics, UC Davis. [Downloadable!]
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This page was last updated on 2008-8-11.


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