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Markets: The Fulton Fish Market

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  • Kathryn Graddy

Abstract

The Fulton Fish Market was a colorful part of the New York City landscape that operated on Fulton Street in Manhattan for over 150 years. In 2005 the market moved from the South Street Seaport in lower Manhattan to Hunts Point in the South Bronx. The Fulton Fish Market--now called The New Fulton Fish Market--is one of the world's largest fish markets, second in size only to Tsukiji, the famous fish market in Tokyo. To economists, it may seem that a large centralized market with well-informed buyers and sellers should also be a very competitive market. But fish is a highly differentiated product. Buyers often wish to examine fish themselves, or have their agents do so. The centralized market performs an important function in matching fish to buyers. The high level of product differentiation and the institutional structure in the Fulton fish market can lead to patterns of behavior that suggest imperfect competition and a segmented market. At times in the past, the repeated nature of price setting and extensive knowledge of the sellers may have created the basis for tacit collusion and allowed the dealers to gather economic rents by exploiting the different elasticities and buying patterns. Additional economic rents resulted from subsidies. Before reforms in 1995, lax regulation of the market provided fertile ground for organized crime.

Suggested Citation

  • Kathryn Graddy, 2006. "Markets: The Fulton Fish Market," Journal of Economic Perspectives, American Economic Association, vol. 20(2), pages 207-220, Spring.
  • Handle: RePEc:aea:jecper:v:20:y:2006:i:2:p:207-220
    Note: DOI: 10.1257/jep.20.2.207
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    File URL: http://www.aeaweb.org/articles.php?doi=10.1257/jep.20.2.207
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    References listed on IDEAS

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    Cited by:

    1. Søren Johansen & Bent Nielsen, 2014. "Optimal hedging with the cointegrated vector autoregressive model," Discussion Papers 14-23, University of Copenhagen. Department of Economics.
    2. Guerci, E. & Kirman, A. & Moulet, S., 2014. "Learning to bid in sequential Dutch auctions," Journal of Economic Dynamics and Control, Elsevier, vol. 48(C), pages 374-393.
    3. Vignes, Annick & Etienne, Jean-Michel, 2011. "Price formation on the Marseille fish market: Evidence from a network analysis," Journal of Economic Behavior & Organization, Elsevier, vol. 80(1), pages 50-67.
    4. Søren Johansen & Bent Nielsen, 2014. "Outlier detection algorithms for least squares time series regression," Economics Papers 2014-W04, Economics Group, Nuffield College, University of Oxford.
    5. Robert G. Hammond & Thayer Morrill, 2014. "Strategic Exclusion Of The Highest-Valued Bidders In Wholesale Automobile Auctions," Economic Inquiry, Western Economic Association International, vol. 52(3), pages 1219-1230, July.
    6. Søren Johansen & Bent Nielsen, 2016. "Asymptotic Theory of Outlier Detection Algorithms for Linear Time Series Regression Models," Scandinavian Journal of Statistics, Danish Society for Theoretical Statistics;Finnish Statistical Society;Norwegian Statistical Association;Swedish Statistical Association, vol. 43(2), pages 321-348, June.
    7. Graddy, Kathryn & Hall, George, 2011. "A dynamic model of price discrimination and inventory management at the Fulton Fish Market," Journal of Economic Behavior & Organization, Elsevier, vol. 80(1), pages 6-19.
    8. Morra, Wayne & Hearn, Gail & Buck, Andrew J., 2009. "The market for bushmeat: Colobus Satanas on Bioko Island," Ecological Economics, Elsevier, vol. 68(10), pages 2619-2626, August.
    9. David Hendry & Grayham E. Mizon, 2016. "Improving the Teaching of Econometrics," Economics Series Working Papers 785, University of Oxford, Department of Economics.
    10. Alan Kirman & Sonia Moulet & Rainer Schulz, 2008. "Price Discrimination and Customer Behaviour: Empirical Evidence from Marseille," Working Papers halshs-00349036, HAL.
    11. Simon Loertscher, 2008. "MARKET MAKING OLIGOPOLY -super-," Journal of Industrial Economics, Wiley Blackwell, vol. 56(2), pages 263-289, June.
    12. Alan Kirman & Sonia Moulet, 2008. "Impact de l'organisation du marché: Comparaison de la négociation de gré à gré et des enchères descendantes," Working Papers halshs-00349034, HAL.

    More about this item

    JEL classification:

    • D40 - Microeconomics - - Market Structure, Pricing, and Design - - - General
    • L10 - Industrial Organization - - Market Structure, Firm Strategy, and Market Performance - - - General

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