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Buyer Market Power in the U.S. Broiler Chicken Industry

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  • Bolotova, Yuliya V.

Abstract

The motivations for this case study are recent developments in the U.S. broiler chicken industry involving allegations of an illegal exercise of buyer market power by the five largest broiler processors in the country in the market for broiler grow-out services. This case study introduces economic, business, and legal issues related to the alleged input price-fixing cartel of the five largest broiler processors. The case study describes the processors’ conduct and presents a theoretical framework that may explain market and price effects of the alleged input price-fixing cartel. The teaching note provides suggested answers to discussion and analytical questions, and it also includes multiple-choice questions that can be used as in-class assignments, quizzes, and exam questions. This case study is suitable for a variety of undergraduate and graduate courses taught in agricultural economics and agribusiness programs and for Extension and outreach audiences.

Suggested Citation

  • Bolotova, Yuliya V., 2025. "Buyer Market Power in the U.S. Broiler Chicken Industry," Applied Economics Teaching Resources (AETR), Agricultural and Applied Economics Association, vol. 7(4), August.
    • Handle: RePEc:ags:aaeatr:377660
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    File URL: https://ageconsearch.umn.edu/record/377660/files/AETR_2025_0209%20Final.pdf
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    References listed on IDEAS

    as
    1. Dimitri Carolyn & Jaenicke Edward C. & Effland Anne B, 2009. "Why Did Contracts Supplant the Cash Market in the Broiler Industry? An Economic Analysis Featuring Technological Innovation and Institutional Response," Journal of Agricultural & Food Industrial Organization, De Gruyter, vol. 7(1), pages 1-36, October.
    2. MacDonald, James M., 2008. "The Economic Organization of U.S. Broiler Production," Economic Information Bulletin 58627, United States Department of Agriculture, Economic Research Service.
    3. Charles R. Knoeber & Walter N. Thurman, 1995. ""Don't Count Your Chickens...": Risk and Risk Shifting in the Broiler Industry," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 77(3), pages 486-496.
    4. Bolotova, Yuliya V., 2022. "Teaching Forward Contracts in Undergraduate Courses in Agribusiness and Agricultural Economics Programs," Applied Economics Teaching Resources (AETR), Agricultural and Applied Economics Association, vol. 4(4), September.
    5. Lidan Ha & Guisseppi Forgionne, 2006. "Econometric Simulation for E-Business Strategy Evaluation," International Journal of E-Business Research (IJEBR), IGI Global Scientific Publishing, vol. 2(2), pages 38-53, April.
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