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Imperfect Competition between Florida and Sao Paulo (Brazil) Orange Juice Producers in the U.S. and European Markets

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  • Luckstead, Jeff
  • Devadoss, Stephen
  • Mittelhammer, Ron

Abstract

We develop a strategic trade model to analyze the oligopolistic competition between Florida and São Paulo processors in the U.S. orange juice market and São Paulo processors in the European orange juice market. We obtain analytical results of the effects of changes in trade liberalization. A structural econometric model is derived from the theoretical model, and the new empirical industrial organization literature is used to estimate the market power of Florida and São Paulo producers. We simulate the effects of U.S. and European tariff reductions on prices, quantities, and trade volume

Suggested Citation

  • Luckstead, Jeff & Devadoss, Stephen & Mittelhammer, Ron, 2015. "Imperfect Competition between Florida and Sao Paulo (Brazil) Orange Juice Producers in the U.S. and European Markets," Journal of Agricultural and Resource Economics, Western Agricultural Economics Association, vol. 40(1), pages 1-15.
    • Handle: RePEc:ags:jlaare:197382
    DOI: 10.22004/ag.econ.197382
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    References listed on IDEAS

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    1. Wang, Honglin & Xiang, Qing & Reardon, Thomas, 2006. "Market Power and Supply Shocks: Evidence from the Orange Juice Market," Staff Paper Series 11508, Michigan State University, Department of Agricultural, Food, and Resource Economics.
    2. Stephen Devadoss & Jeff Luckstead & Ron Mittelhammer, 2013. "Econometric issues related to identification of the market power parameter," Applied Economics, Taylor & Francis Journals, vol. 45(32), pages 4569-4574, November.
    3. Spreen, Thomas H. & Brewster, Charlene & Brown, Mark G., 2003. "The Free Trade Area of the Americas and the Market for Processed Orange Products," Journal of Agricultural and Applied Economics, Cambridge University Press, vol. 35(1), pages 107-126, April.
    4. Nathalie Lavoie, 2005. "Price Discrimination in the Context of Vertical Differentiation: An Application to Canadian Wheat Exports," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 87(4), pages 835-854.
    5. Brown, Mark G., 2010. "European Demand for Orange Juice," Research papers 104349, Florida Department of Citrus.
    6. Brown, Mark G. & Spreen, Thomas H. & Lee, Jonq-Ying, 2004. "Impacts On U.S. Prices Of Reducing Orange Juice Tariffs In Major World Markets," Journal of Food Distribution Research, Food Distribution Research Society, vol. 35(2), pages 1-8, July.
    7. Robert H. Porter, 1983. "A Study of Cartel Stability: The Joint Executive Committee, 1880-1886," Bell Journal of Economics, The RAND Corporation, vol. 14(2), pages 301-314, Autumn.
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    Cited by:

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    4. Zainuddin Zainuddin & Bonar M. Sinaga & Sri Hartoyo & Erwidodo Erwidodo, 2019. "Assessing Market Power, Impact of Import Tariff Reductions and Weakening Demand for Rubber Products (HS code 4011) in the Australian Market," International Journal of Economics and Financial Issues, Econjournals, vol. 9(2), pages 59-72.
    5. Dhamodharan, Mahalingam & Devadoss, Stephen & Luckstead, Jeff, 2016. "Imperfect Competition, Trade Policies, and Technological Changes in the Orange Juice Market," Journal of Agricultural and Resource Economics, Western Agricultural Economics Association, vol. 41(2), May.

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