IDEAS home Printed from https://ideas.repec.org/a/beo/journl/v66y2021i229p61-98.html
   My bibliography  Save this article

An Industrial Organisation Model For The Vietnamese Food Retail Market

Author

Listed:
  • Chi Thanh NGO

Abstract

Using the case of Vietnam, this paper proposes an industrial organisation model of the food distribution system in developing countries. Since most work in this field has adopted an empirical approach, this paper will instead focus on a theoretical model based on the theory of imperfect competition applied in agricultural economics. We introduce two distribution channels of product differentiation linked vertically by demand, and study the quantity flow from small producers to consumers by means of a Nash equilibrium. We show that there is a Nash equilibrium of the food distribution system and market power, with effects on both farmers and consumers. The paper discusses the implications of these results and proposes policies to intervene in the market and mitigate its power to improve the wealth of both farmers and consumers. The competitive market model of the food distribution system presented in this paper is also important in analysing the policy implications of a food market with imperfect competition in developing countries.

Suggested Citation

  • Chi Thanh NGO, 2021. "An Industrial Organisation Model For The Vietnamese Food Retail Market," Economic Annals, Faculty of Economics and Business, University of Belgrade, vol. 66(229), pages 61-98, April – J.
    • Handle: RePEc:beo:journl:v:66:y:2021:i:229:p:61-98
    as

    Download full text from publisher

    File URL: http://www.ekof.bg.ac.rs/wp-content/uploads/2014/04/035.pdf
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. Robert J. Myers & Richard J. Sexton & William G. Tomek, 2010. "A Century of Research on Agricultural Markets," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 92(2), pages 376-403.
    2. Motta, Massimo, 1993. "Endogenous Quality Choice: Price vs. Quantity Competition," Journal of Industrial Economics, Wiley Blackwell, vol. 41(2), pages 113-131, June.
    3. Shaked, Avner & Sutton, John, 1987. "Product Differentiation and Industrial Structure," Journal of Industrial Economics, Wiley Blackwell, vol. 36(2), pages 131-146, December.
    4. Steve McCorriston, 2002. "Why should imperfect competition matter to agricultural economists?," European Review of Agricultural Economics, Oxford University Press and the European Agricultural and Applied Economics Publications Foundation, vol. 29(3), pages 349-371, July.
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Aigner, Rafael & Weber, Katharina, 2017. "The Fehmarn Belt duopoly – Can the ferry compete with a tunnel?," Transportation Research Part A: Policy and Practice, Elsevier, vol. 100(C), pages 1-15.
    2. Ngo Van Long & Zhuang Miao, 2020. "Multiple‐quality Cournot oligopoly and the role of market size," Journal of Economics & Management Strategy, Wiley Blackwell, vol. 29(4), pages 932-952, October.
    3. Yurko, Anna V., 2011. "How does income inequality affect market outcomes in vertically differentiated markets?," International Journal of Industrial Organization, Elsevier, vol. 29(4), pages 493-503, July.
    4. Leufkens, Daniel, 2014. "Der Wert Geschützter Herkunftsangaben In Einer Industrieökonomischen Und Hedonischen Preisanalyse," 54th Annual Conference, Goettingen, Germany, September 17-19, 2014 187429, German Association of Agricultural Economists (GEWISOLA).
    5. Auer, Raphael A. & Sauré, Philip, 2017. "Dynamic entry in vertically differentiated markets," Journal of Economic Theory, Elsevier, vol. 167(C), pages 177-205.
    6. Long, Ngo Van & Miao, Zhuang, 2019. "Vertically Differentiated Cournot Oligopoly : Effects of Market Expansion and Trade Liberalization on Relative Markup and Product Quality," Discussion paper series HIAS-E-91, Hitotsubashi Institute for Advanced Study, Hitotsubashi University.
    7. Cusolito, Ana, 2009. "Competition, imitation, and technical change : quality vs. variety," Policy Research Working Paper Series 4997, The World Bank.
    8. Xin (Shane) Wang & Yuying Xie & Harsharanjeet S. Jagpal & Sengun Yeniyurt, 2016. "Coordinating R&D, Product Positioning, and Pricing Strategy: A Duopoly Model," Customer Needs and Solutions, Springer;Institute for Sustainable Innovation and Growth (iSIG), vol. 3(2), pages 104-114, June.
    9. Aaheli Ahmed & Debashis Chakraborty & Ranajoy Bhattacharyya, 2020. "The Recent Coronavirus (COVID-19) Pandemic: A Review of Issues for Indian Pharmaceutical Exports," Foreign Trade Review, , vol. 55(3), pages 418-435, August.
    10. Fei Yu & Yanrui Wu & Jin Chen & Arie Y. Lewin, 2023. "Technological leapfrogging and country strategic patent policy," Journal of International Business Studies, Palgrave Macmillan;Academy of International Business, vol. 54(5), pages 887-909, July.
    11. Leufkens, D., 2015. "Der Wert geschützter Herkunftsangaben in einer industrieökonomischen und hedonischen Preisanalyse," Proceedings “Schriften der Gesellschaft für Wirtschafts- und Sozialwissenschaften des Landbaues e.V.”, German Association of Agricultural Economists (GEWISOLA), vol. 50, March.
    12. Fei Yu & Yanrui Wu & Jin Chen & Arie Lewin, 2022. "Technological Leapfrogging and Strategic Patent Policy," Economics Discussion / Working Papers 22-17, The University of Western Australia, Department of Economics.
    13. Borja Mesa-Sánchez, 2017. "Preemptive Mergers in a Vertically Differentiated Unionized Oligopoly," Manchester School, University of Manchester, vol. 85(5), pages 511-540, September.
    14. Tim Lloyd, 2017. "Forty Years of Price Transmission Research in the Food Industry: Insights, Challenges and Prospects," Journal of Agricultural Economics, Wiley Blackwell, vol. 68(1), pages 3-21, February.
    15. Ashantha Ranasinghe & Xuejuan Su, 2023. "When social assistance meets market power: A mixed duopoly view of health insurance in the United States," Economic Inquiry, Western Economic Association International, vol. 61(4), pages 851-869, October.
    16. Claire Chambolle & Eric Giraud‐Héraud, 2005. "Certification of Origin as a Non‐Tariff Barrier," Review of International Economics, Wiley Blackwell, vol. 13(3), pages 461-471, August.
    17. Aurora García‐Gallego & Nikolaos Georgantzís, 2009. "Market Effects of Changes in Consumers' Social Responsibility," Journal of Economics & Management Strategy, Wiley Blackwell, vol. 18(1), pages 235-262, March.
    18. Lukáš Čechura & Tinoush Jamali Jaghdani, 2021. "Market Imperfections within the European Wheat Value Chain: The Case of France and the United Kingdom," Agriculture, MDPI, vol. 11(9), pages 1-21, August.
    19. Nathan H. Miller, 2008. "Competition When Consumers Value Firm Scope," EAG Discussions Papers 200807, Department of Justice, Antitrust Division.
    20. Marion Desquilbet & Sylvette Monier-Dilhan, 2015. "Are geographical indications a worthy quality label? A framework with endogenous quality choice," European Review of Agricultural Economics, Oxford University Press and the European Agricultural and Applied Economics Publications Foundation, vol. 42(1), pages 129-150.

    More about this item

    Keywords

    food distribution system; imperfect competition; Nash equilibrium; Vietnam economics; agricultural economics.;
    All these keywords.

    JEL classification:

    • C61 - Mathematical and Quantitative Methods - - Mathematical Methods; Programming Models; Mathematical and Simulation Modeling - - - Optimization Techniques; Programming Models; Dynamic Analysis
    • D43 - Microeconomics - - Market Structure, Pricing, and Design - - - Oligopoly and Other Forms of Market Imperfection
    • Q13 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Agriculture - - - Agricultural Markets and Marketing; Cooperatives; Agribusiness
    • Q18 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Agriculture - - - Agricultural Policy; Food Policy; Animal Welfare Policy

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:beo:journl:v:66:y:2021:i:229:p:61-98. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Goran Petrić (email available below). General contact details of provider: https://edirc.repec.org/data/efbeoyu.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.