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Assessing the Intensity of Market Competition in the US Papaya Import Market

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  • Evans, Edward
  • Ballen, Fredy

Abstract

Most of the empirical work addressing imperfect competition in international agricultural trade has focused on grains and meats. The present study is an attempt to help fill the gap by assessing market competitiveness in the US fresh papaya market, which can be characterized as oligopolistic whereby Mexico, Belize, and Brazil are the main suppliers. In order to assess the intensity of competition among fresh papaya exporters in the US market, an inverse residual demand model is specified and estimated. The findings suggest that Mexico, Belize, and Brazil are completely constrained in exercising market power in the US fresh papaya market.

Suggested Citation

  • Evans, Edward & Ballen, Fredy, 2014. "Assessing the Intensity of Market Competition in the US Papaya Import Market," Journal of Food Distribution Research, Food Distribution Research Society, vol. 45(2), pages 1-13, July.
    • Handle: RePEc:ags:jlofdr:186933
    DOI: 10.22004/ag.econ.186933
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    References listed on IDEAS

    as
    1. Reimer, Jeffrey J. & Stiegert, Kyle W., 2006. "Evidence on Imperfect Competition and Strategic Trade Theory," Staff Paper Series 498, University of Wisconsin, Agricultural and Applied Economics.
    2. Daniel H. Pick & Timothy A. Park, 1991. "The Competitive Structure of U.S. Agricultural Exports," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 73(1), pages 133-141.
    3. Carlos Arnade & Daniel Pick, 2000. "Seasonal oligopoly power: the case of the US fresh fruit market," Applied Economics, Taylor & Francis Journals, vol. 32(8), pages 969-977.
    4. Spencer, David E & Berk, Kenneth N, 1981. "A Limited Information Specification Test [Specification Tests in Econometrics]," Econometrica, Econometric Society, vol. 49(4), pages 1079-1085, June.
    5. Reed, Michael R. & Saghaian, Sayed H., 2004. "Measuring the Intensity of Competition in the Japanese Beef Market," Journal of Agricultural and Applied Economics, Southern Agricultural Economics Association, vol. 36(1), pages 1-9, April.
    6. Hausman, Jerry, 2015. "Specification tests in econometrics," Applied Econometrics, Russian Presidential Academy of National Economy and Public Administration (RANEPA), vol. 38(2), pages 112-134.
    7. Reimer Jeffrey J & Stiegert Kyle, 2006. "Imperfect Competition and Strategic Trade Theory: Evidence for International Food and Agricultural Markets," Journal of Agricultural & Food Industrial Organization, De Gruyter, vol. 4(1), pages 1-27, September.
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    Cited by:

    1. Evans, Edwardv A. & Ballen, Fredy H., 2015. "Competitive Behavior in the U.S. Green Skin Avocado Market," Journal of Food Distribution Research, Food Distribution Research Society, vol. 46(3), pages 1-12, November.

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