The Welfare Implications of Oligopoly in Agricultural Input Markets
AbstractThe persistence of oligopoly in the agricultural input supply sector suggests that farmers' economic welfare is reduced since the price of agricultural inputs will be in excess of marginal cost. This paper focuses on the U.K. fertilizer and tractor industries and measures the welfare impact on U.K. farmers if oligopoly in these two industries could be removed. Using a computable partial equilibrium model, it is shown that depending on the definition of welfare loss, farmers' producer surplus could increase by as much as 30 percent with most of this being due to eradicating oligopoly in the fertilizer industry. These results suggest that the social costs of market power in these industries could be higher than those found for manufacturing industries in general. Copyright 1993 by Oxford University Press.
Download InfoTo our knowledge, this item is not available for download. To find whether it is available, there are three options:
1. Check below under "Related research" whether another version of this item is available online.
2. Check on the provider's web page whether it is in fact available.
3. Perform a search for a similarly titled item that would be available.
Bibliographic InfoArticle provided by Foundation for the European Review of Agricultural Economics in its journal European Review of Agricultural Economics.
Volume (Year): 20 (1993)
Issue (Month): 1 ()
Contact details of provider:
Postal: Oxford University Press, Great Clarendon Street, Oxford OX2 6DP, UK
Fax: 01865 267 985
Web page: http://www.erae.oupjournals.org/
More information through EDIRC
You can help add them by filling out this form.
CitEc Project, subscribe to its RSS feed for this item.
- Friedrich Schneider & Klaus Salhofer & Erwin Schmid & Gerhard Streicher, 2001. "Was the Austrian agricultural policy least cost efficient?," Economics working papers 2001-03, Department of Economics, Johannes Kepler University Linz, Austria.
- Nolan, Elizabeth & Santos, Paulo, 2009. "Evidence for increasing concentration in plant breeding industries in the United States and the European Union," 2009 Conference (53rd), February 11-13, 2009, Cairns, Australia 48060, Australian Agricultural and Resource Economics Society.
- Salhofer, Klaus & Schneider, Friedrich & Streicher, Gerhard, 1999. "Least Cost Efficiency Of Agricultural Programs: An Empirical Investigation," 1999 Annual meeting, August 8-11, Nashville, TN 21565, American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association).
- Ronchi, Loraine, 2006. "Fairtrade and market failures in agricultural commodity markets," Policy Research Working Paper Series 4011, The World Bank.
- Oskam, Arie J. & Meester, Gerrit, 2006. "How useful is the PSE in determining agricultural support?," Food Policy, Elsevier, vol. 31(2), pages 123-141, April.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Oxford University Press) or (Christopher F. Baum).
If references are entirely missing, you can add them using this form.