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Further Evidence on Competition in the US Grain Export Trade

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  • Patterson, Paul M
  • Abbott, Philip C

Abstract

This study analyzes the relationship between export market structure and the pricing behavior of U.S. grain exporting firms. A generalized Cournot model is estimated by two-stage least squares using pooled data sets for U.S. wheat and corn exports. The cross-sectional units correspond to foreign country destinations. Discriminatory export pricing behavior was found to be significantly related to export seller concentration, U.S. market share, total export volume, and import market size. Yet, the estimated coefficients linking these market structure variables to the export price markup were relatively small in magnitude, suggesting little quantitative impact from market power. Copyright 1994 by Blackwell Publishing Ltd.

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  • Patterson, Paul M & Abbott, Philip C, 1994. "Further Evidence on Competition in the US Grain Export Trade," Journal of Industrial Economics, Wiley Blackwell, vol. 42(4), pages 429-437, December.
    • Handle: RePEc:bla:jindec:v:42:y:1994:i:4:p:429-37
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    2. Soregaroli, Claudio & Sckokai, Paolo, 2011. "Modelling Agricultural Commodity Markets under Imperfect Competition," 2011 International Congress, August 30-September 2, 2011, Zurich, Switzerland 116012, European Association of Agricultural Economists.
    3. Nitish Jain & Karan Girotra & Serguei Netessine, 2014. "Managing Global Sourcing: Inventory Performance," Management Science, INFORMS, vol. 60(5), pages 1202-1222, May.
    4. Wilson, William W. & Dahl, Bruce L., 1999. "Transnational Grain Firms: Evolution And Strategies In North America," Agricultural Economics Reports 23278, North Dakota State University, Department of Agribusiness and Applied Economics.
    5. Bowen Zheng & Mengjie Zhang & Xuefang Zhang, 2022. "The rise of market power and firms' investment: Evidence from China," Accounting and Finance, Accounting and Finance Association of Australia and New Zealand, vol. 62(5), pages 4807-4830, December.
    6. Reimer, Jeffrey J. & Stiegert, Kyle W., 2006. "Evidence on Imperfect Competition and Strategic Trade Theory," Staff Papers 12609, University of Wisconsin-Madison, Department of Agricultural and Applied Economics.
    7. Philip C. Abbott & Panu K. S. Kallio, 1996. "Implications of Game Theory for International Agricultural Trade," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 78(3), pages 738-744.
    8. Margherita Scoppola, 2007. "Economies of scale and market structure in international grain trade," Agricultural Economics, International Association of Agricultural Economists, vol. 37(2‐3), pages 277-291, September.
    9. McCorriston, Steve & MacLaren, Donald, 2001. "The Trade Distorting Effect Of Single-Desk State Trading Exporters," 2001 Conference (45th), January 23-25, 2001, Adelaide, Australia 125790, Australian Agricultural and Resource Economics Society.
    10. Esperanza Gracia, 1999. "Márgenes y cuotas de mercado. Un análisis con un micropanel," Investigaciones Economicas, Fundación SEPI, vol. 23(3), pages 393-428, September.
    11. McCorriston, Steve & MacLaren, Donald, 2005. "Single-desk state trading exporters," European Journal of Political Economy, Elsevier, vol. 21(2), pages 503-524, June.

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