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Econometric estimation of farm prices of processed fruits and vegetables: does imperfect competition really matter?

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  • French, Ben C.

Abstract

The markets for many processed fruits and vegetables are characterized by few processors and by market control programs or bargaining organizations on the supply side. Under such conditions, farm level demand functions may not be uniquely specified. This paper develops an approach to econometric estimation of farm pries when there is bargaining, with an application to the cling peach industry. For prediction purposes, the model turns out to be the same as would be obtained if the industry were misspecified to be perfectly competitive. However, proper specification may be important if the results are used for policy analysis.

Suggested Citation

  • French, Ben C., 1985. "Econometric estimation of farm prices of processed fruits and vegetables: does imperfect competition really matter?," WAEA/ WFEA Conference Archive (1929-1995) 291724, Western Agricultural Economics Association.
  • Handle: RePEc:ags:waeaar:291724
    DOI: 10.22004/ag.econ.291724
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    Cited by:

    1. Kim, C.S. & Schaible, Glenn D. & Hamilton, Joel R. & Barney, Kristen, 1987. "Economic Impacts on Consumers, Growers, and Processors Resulting from Mechanical Tomato Harvesting in California-Revisited," Journal of Agricultural Economics Research, United States Department of Agriculture, Economic Research Service, vol. 39(2), pages 1-7.

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