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Market Power in Direct Marketing of Fresh Produce: Community Supported Agriculture Farms

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Author Info

  • Daniel A. Lass

    ()
    (Department of Resource Economics, University of Massachusetts Amherst)

  • Nathalie Lavoie

    ()
    (Department of Resource Economics, University of Massachusetts Amherst)

  • T. Robert Fetter

    ()
    (Science Applications International Corporation)

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    Abstract

    CSA farms establish a loyal customer base and, potentially, market power. A new empirical industrial organization (NEIO) approach and survey data from Northeast CSA farms are used to determine whether CSA farms have market power and the extent to which they exercise their market power. Results suggest CSA farms exert about two percent of their potential monopoly power.

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    File URL: http://courses.umass.edu/resec/workingpapers/documents/resecworkingpaper2005-2.pdf
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    Bibliographic Info

    Paper provided by University of Massachusetts Amherst, Department of Resource Economics in its series Working Papers with number 2005-2.

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    Length: 24 pages
    Date of creation: Jan 2005
    Date of revision:
    Handle: RePEc:dre:wpaper:2005-2

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    Web page: http://www.umass.edu/resec/
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    Related research

    Keywords: Community Supported Agriculture; New Empirical Industrial Organization; Market Power; Fresh Produce; Organic Agriculture;

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    1. Appelbaum, Elie, 1982. "The estimation of the degree of oligopoly power," Journal of Econometrics, Elsevier, vol. 19(2-3), pages 287-299, August.
    2. Bresnahan, Timothy F., 1982. "The oligopoly solution concept is identified," Economics Letters, Elsevier, vol. 10(1-2), pages 87-92.
    3. Lau, Lawrence J., 1982. "On identifying the degree of competitiveness from industry price and output data," Economics Letters, Elsevier, vol. 10(1-2), pages 93-99.
    4. Bresnahan, Timothy F., 1989. "Empirical studies of industries with market power," Handbook of Industrial Organization, in: R. Schmalensee & R. Willig (ed.), Handbook of Industrial Organization, edition 1, volume 2, chapter 17, pages 1011-1057 Elsevier.
    5. Ian Sheldon & Richard Sperling, 2003. "Estimating the Extent of Imperfect Competition in the Food Industry: What Have We Learned?," Journal of Agricultural Economics, Wiley Blackwell, vol. 54(1), pages 89-109.
    6. repec:cdl:agrebk:677098 is not listed on IDEAS
    7. Sexton, Richard J. & Lavoie, Nathalie, 2001. "Food processing and distribution: An industrial organization approach," Handbook of Agricultural Economics, in: B. L. Gardner & G. C. Rausser (ed.), Handbook of Agricultural Economics, edition 1, volume 1, chapter 15, pages 863-932 Elsevier.
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