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Market concentration and vertical coordination in the pork industry: Implications for public policy analysis

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  • Philip L. Paarlberg

    (Department of Agricultural Economics, 1145 Krannert Building, Purdue University, West Lafayette, IN 47907)

  • Mildred M. Haley

    (Economic Research Service, U.S. Department of Agriculture, 1800 M Street NW, Washington, DC 20036)

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    Abstract

    Concentration in the pork industry has increased and spawned concerns over market power. Agricultural policy instruments operate differently under imperfect competition. This article analyzes the impacts of policy instruments when the pork industry is assumed to be imperfectly competitive. The arguments are made that policy instruments can be categorized into those with impacts independent of market conduct and those with impacts dependent on market conduct. If the policy objective is to raise swine grower welfare, markets need to remain open to trade, the use of quantitative policy instruments should be avoided, and domestic subsidies to packers must be effective. [Econ Lit citation: L130, L660, Q118] © 2001 John Wiley & Sons, Inc.

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    File URL: http://hdl.handle.net/10.1002/agr.1011
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    Bibliographic Info

    Article provided by John Wiley & Sons, Ltd. in its journal Agribusiness.

    Volume (Year): 17 (2001)
    Issue (Month): 2 ()
    Pages: 197-212

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    Handle: RePEc:wly:agribz:v:17:y:2001:i:2:p:197-212

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    Web page: http://onlinelibrary.wiley.com/journal/10.1002/(ISSN)1520-6297

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    1. James A. Brander & Barbara J. Spencer, 1984. "Export Subsidies and International Market Share Rivalry," NBER Working Papers 1464, National Bureau of Economic Research, Inc.
    2. Deodhar, Satish Y. & Sheldon, Ian M., 1997. "Market Power In The World Market For Soymeal Exports," Journal of Agricultural and Resource Economics, Western Agricultural Economics Association, Western Agricultural Economics Association, vol. 22(01), July.
    3. Hayenga, Marvin L., 1998. "Cost Structures of Pork Slaughter and Processing Firms: Behavioral and Performance Implications," Staff General Research Papers, Iowa State University, Department of Economics 1254, Iowa State University, Department of Economics.
    4. James M MacDonald & Michael E Ollinger, 2000. "Scale Economies and Consolidation in Hog Slaughter," Working Papers, Center for Economic Studies, U.S. Census Bureau 00-03, Center for Economic Studies, U.S. Census Bureau.
    5. Schroeter, John R., 1988. "Estimating the Degree of Market Power in the Beef Packing Industry," Staff General Research Papers, Iowa State University, Department of Economics 11114, Iowa State University, Department of Economics.
    6. A. M. Azzam, 1992. "Testing The Competitiveness Of Food Price Spreads," Journal of Agricultural Economics, Wiley Blackwell, Wiley Blackwell, vol. 43(2), pages 248-256.
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