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Estimating Market Power By Retailers In The Italian Parmigiano Reggiano And Grana Padano Cheese Market

Author

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  • Sckokai, Paolo
  • Soregaroli, Claudio
  • Moro, Daniele

Abstract

In this paper, we evaluate the role of market power by retailers within the supply chain of Parmigiano Reggiano and Grana Padano, the two most famous Italian quality cheeses. Market power is analysed in the context of an imperfect competition model of the supply chain, in which retailers are allowed to exercise market power both downstream and upstream. We jointly estimate market power parameters together with supply and demand elasticities, by means of a structural system of demand, supply and price transmission equations, estimated using the Generalised Method of Moments. We find clear evidences of downstream market power by retailers (toward final consumers), and no evidences of upstream market power (toward processors/ripeners). These results may be justified by the structure of the supply chain and by the peculiar characteristics of the two cheeses.

Suggested Citation

  • Sckokai, Paolo & Soregaroli, Claudio & Moro, Daniele, 2009. "Estimating Market Power By Retailers In The Italian Parmigiano Reggiano And Grana Padano Cheese Market," 2009 Conference, August 16-22, 2009, Beijing, China 51425, International Association of Agricultural Economists.
    • Handle: RePEc:ags:iaae09:51425
    DOI: 10.22004/ag.econ.51425
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    References listed on IDEAS

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    Cited by:

    1. Moro, Daniele & Paolo, Sckokai & Veneziani, Mario, 2012. "Multi-stage Market Power in the Italian Fresh Meat Industry," 2012 Annual Meeting, August 12-14, 2012, Seattle, Washington 125065, Agricultural and Applied Economics Association.
    2. Klaus Salhofer & Christoph Tribl & Franz Sinabell, 2012. "Market power in Austrian food retailing: the case of milk products," Empirica, Springer;Austrian Institute for Economic Research;Austrian Economic Association, vol. 39(1), pages 109-122, February.
    3. Tiboldo, Giulia & Lopez, Rigoberto & Hirsch, Stefan, 2016. "Private label market power: evidence from Italian dairy retailing," 2016 Annual Meeting, July 31-August 2, Boston, Massachusetts 235592, Agricultural and Applied Economics Association.

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