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Environmental Regulation, Market Power and Price Discrimination in the Agricultural Chemical Industry

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  • Smith, Vincent H.
  • Johnson, James B.
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    Abstract

    Chemical companies generally support environmental regulatory segregation Canadian and U.S. agricultural chemical markets, apparently because it enables them to practice third order price discrimination. This study provides new cross section evidence that suggests price discrimination is practiced. We examine the potential implications chemical market desegregation for agricultural chemical prices, farmer welfare, and consumer welfare.

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    File URL: http://purl.umn.edu/19520
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    Bibliographic Info

    Paper provided by American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association) in its series 2005 Annual meeting, July 24-27, Providence, RI with number 19520.

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    Date of creation: 2005
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    Handle: RePEc:ags:aaea05:19520

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    Related research

    Keywords: price discrimination; agricultural chemicals; economic welfare; Environmental Economics and Policy;

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    1. Carlson, John A & McAfee, R Preston, 1983. "Discrete Equilibrium Price Dispersion," Journal of Political Economy, University of Chicago Press, vol. 91(3), pages 480-93, June.
    2. John McMillan & Peter B. Morgan, 1988. "Price Dispersion, Price Flexibility, and Repeated Purchasing," Canadian Journal of Economics, Canadian Economics Association, vol. 21(4), pages 883-902, November.
    3. Colin A. Carter & R.M.A. Loyns & Derek Berwald, 1998. "Domestic Costs of Statutory Marketing Authorities: The Case of the Canadian Wheat Board," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 80(2), pages 313-324.
    4. Vincent H. Smith & Barry K. Goodwin, 1996. "Crop Insurance, Moral Hazard, and Agricultural Chemical Use," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 78(2), pages 428-438.
    5. Alan T. Sorensen, 2000. "Equilibrium Price Dispersion in Retail Markets for Prescription Drugs," Journal of Political Economy, University of Chicago Press, vol. 108(4), pages 833-862, August.
    6. Sofronis K. Clerides, 2004. "Price Discrimination with Differentiated Products: Definition and Identification," Economic Inquiry, Western Economic Association International, vol. 42(3), pages 402-412, July.
    7. Stole, Lars A., 2007. "Price Discrimination and Competition," Handbook of Industrial Organization, Elsevier.
    8. Freshwater, David, 2003. "Free Trade, Pesticide Regulation and NAFTA Harmonization," Estey Centre Journal of International Law and Trade Policy, Estey Centre for Law and Economics in International Trade, vol. 4(1).
    9. George J. Stigler, 1961. "The Economics of Information," Journal of Political Economy, University of Chicago Press, vol. 69, pages 213.
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