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Measuring Bilateral Market Power in International Markets of Vertically Differentiated Agricultural Commodities

Author

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  • Yamaura Koichi

    (International Environmental and Agricultural Science, Tokyo University of Agriculture and Technology, Tokyo, Japan)

  • Xia Tian

    (Agricultural Economics, Kansas State University, Manhattan, KS, USA)

Abstract

Two features of international markets of agricultural commodities are bilateral market power of exporting and importing countries and the coexistence of non-genetically modified (non-GM) and genetically modified (GM) products. The two features were not taken into account in most extant studies on market power in international agricultural commodity markets. This research develops a bilateral oligopoly model with the interaction between non-GM and GM commodity and conducts an empirical estimation for U.S.–Japan soybean trade. The estimation results show that U.S. exporters and Japanese importers are almost equally sharing the dominance of market power. The analysis in this research provides new measures of market power and improves the understanding on world soybean markets.

Suggested Citation

  • Yamaura Koichi & Xia Tian, 2016. "Measuring Bilateral Market Power in International Markets of Vertically Differentiated Agricultural Commodities," Journal of Agricultural & Food Industrial Organization, De Gruyter, vol. 14(1), pages 33-42, May.
    • Handle: RePEc:bpj:bjafio:v:14:y:2016:i:1:p:33-42:n:1
    DOI: 10.1515/jafio-2013-0020
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    References listed on IDEAS

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    Cited by:

    1. Haque, Samiul & Hammami, AbdelMalek & Xia, Tian & Guan, Zhengfei, 2023. "Market Power in the Florida Orange Juice Processing Industry," 2023 Annual Meeting, July 23-25, Washington D.C. 335761, Agricultural and Applied Economics Association.
    2. Maes, Dries & Vancauteren, Mark & Van Passel, Steven, 2019. "Investigating market power in the Belgian pork production chain," Review of Agricultural, Food and Environmental Studies, Institut National de la Recherche Agronomique (INRA), vol. 100(1-4), November.
    3. Dries Maes & Mark Vancauteren & Steven Van Passel, 2019. "Investigating market power in the Belgian porkproduction chain," Review of Agricultural, Food and Environmental Studies, INRA Department of Economics, vol. 100(1-4), pages 93-117.
    4. Hayashida, K., 2018. "Bargaining Power between Food Processors and Retailers: Evidence from Japanese Milk Transactions," 2018 Conference, July 28-August 2, 2018, Vancouver, British Columbia 277730, International Association of Agricultural Economists.
    5. Dries Maes & Mark Vancauteren & Steven Passel, 2019. "Investigating market power in the Belgian pork production chain," Review of Agricultural, Food and Environmental Studies, Springer, vol. 100(1), pages 93-117, December.

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