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Welfare Effects of Trade Associations: The Case of the Chilean Salmon Export Industry

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  • Thomas Eisenberg
  • Manuel Estay
  • Debi Prasad Mohapatra

Abstract

This article examines the welfare consequences of a trade association in an exporting country on consumers in destination countries. We estimate a structural model of the Chilean Salmon exporting industry that endogenizes firms' pricing and export decisions. Our results show that the trade association has a positive effect on consumer utility and involves higher marginal costs of production, consistent with higher quality products. Reduced form analysis estimates price effects associated with trade association membership of 3 to 8 percent. Our counterfactual analysis reveals that eliminating the trade association would reduce consumer welfare by 1.7 billion USD in destination countries.

Suggested Citation

  • Thomas Eisenberg & Manuel Estay & Debi Prasad Mohapatra, 2026. "Welfare Effects of Trade Associations: The Case of the Chilean Salmon Export Industry," RAND Journal of Economics, RAND Corporation, vol. 57(3), pages 745-763, September.
    • Handle: RePEc:bla:randje:v:57:y:2026:i:3:p:745-763
    DOI: 10.1111/1756-2171.70073
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