The Dark Side of Coffee Market Power in the German Market for Roasted Coffee
AbstractGermany is the second important coffee market in the world, just overshadowed by the United States. Coffee is the most famous beverage in Germany - even more popular than beer. On the supply side dominate few roasters. Market structure influences the market outcome and explains the processors' ability to exercise market power. This paper aims at studying the pricing behavior in the German market for roasted coffee. Respectively, it discusses the impact of three different explanations. First, market power may be due to low price elasticity related to a high level of consumption. Second, pricing behavior may be influenced by the industry concentration. And finally, pricing behavior may be change over time due to exogenous shocks. In particular, the degree of competition has changed as a consequences of a merger. Further, cyclical demand changes induce pricing behavior. Empirical results are derived using data on the aggregate market for roasted coffee in Germany during 1992:1 to 2000:12.
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Bibliographic InfoPaper provided by European Association of Agricultural Economists in its series 2002 International Congress, August 28-31, 2002, Zaragoza, Spain with number 24969.
Date of creation: 2002
Date of revision:
Market for roasted coffee; Germany; elasticity of conjectural variation; market power; simultaneous equation system; GMM; Industrial Organization;
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- Bonnet, Céline & Dubois, Pierre & Villas Boas, Sofia B., 2009.
"Empirical Evidence on the Role of Non Linear Wholesale Pricing and Vertical Restraints on Cost Pass-Through,"
TSE Working Papers
09-067, Toulouse School of Economics (TSE).
- Celine Bonnet & Pierre Dubois & Sofia B. Villas Boas & Daniel Klapper, 2013. "Empirical Evidence on the Role of Nonlinear Wholesale Pricing and Vertical Restraints on Cost Pass-Through," The Review of Economics and Statistics, MIT Press, vol. 95(2), pages 500-515, May.
- Celine, Bonnet & Dubois, Pierre & Villas-Boas, Sofia B., 2009. "Empirical Evidence on the Role of Non Linear Wholesale Pricing and Vertical Restraints on Cost Pass-Through," Department of Agricultural & Resource Economics, UC Berkeley, Working Paper Series qt5nq6h34n, Department of Agricultural & Resource Economics, UC Berkeley.
- Bonnet, Céline & Dubois, Pierre & Villas-Boas, Sofia Berto, 2010. "Empirical Evidence on the Role of Non Linear Wholesale Pricing and Vertical Restraints on Cost Pass-Through," CEPR Discussion Papers 8004, C.E.P.R. Discussion Papers.
- Bonnet, Céline & Dubois, Pierre & Villas Boas, Sofia B., 2009. "Empirical Evidence on the Role of Non Linear Wholesale Pricing and Vertical Restraints on Cost Pass-Through," IDEI Working Papers 565, Institut d'Économie Industrielle (IDEI), Toulouse, revised Sep 2011.
- Bonnet, Celine & Dubois, Pierre & Villas-Boas, Sofia B., 2009. "Empirical evidence on the role of non linear wholesale pricing and vertical restraints on cost pass-through," CUDARE Working Paper Series 1089, University of California at Berkeley, Department of Agricultural and Resource Economics and Policy.
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