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Price Discrimination in the World Trade of Agricultural Commodities

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  • Martin E. Abel

Abstract

Price discrimination between domestic and export markets by exporters of agricultural commodities is a long-established practice. It has been common for exporters to charge lower prices in world markets than in home markets. In recent years, some countries that are major importers of agricultural products have adopted minimum-import-price schemes to insulate their domestic prices from world prices. The effects of such trade barriers on the price-discrimination practices of exporters is examined. As minimum-import-price schemes become more widespread, it may be more profitable for exporters to charge higher prices in export markets than in their own domestic markets. The implications of reversing the direction of price discrimination are explored for exporters, importers employing minimum-import-price schemes, and importers with no or minimal trade barriers.

Suggested Citation

  • Martin E. Abel, 1966. "Price Discrimination in the World Trade of Agricultural Commodities," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 48(2), pages 194-208.
    • Handle: RePEc:oup:ajagec:v:48:y:1966:i:2:p:194-208.
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    File URL: http://hdl.handle.net/10.2307/1236211
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    Cited by:

    1. Tomek, William G. & Robinson, Kenneth L., 1977. "Agricultural Price Analysis and Outlook," A Survey of Agricultural Economics Literature, Volume 1: Traditional Fields of Agricultural Economics 1940s to 1970s,, Agricultural and Applied Economics Association.
    2. Brandow, George E., 1977. "Policy for Commercial Agriculture, 1945-71," A Survey of Agricultural Economics Literature, Volume 1: Traditional Fields of Agricultural Economics 1940s to 1970s,, Agricultural and Applied Economics Association.
    3. JEFFREY T. La FRANCE & ANDREW SCHMITZ & DAVID ZILBERMAN, 1984. "Small Leading Firms," The Economic Record, The Economic Society of Australia, vol. 60(2), pages 160-164, June.
    4. Tomek, William G. & Robinson, Kenneth L., 1977. "PART V. Agricultural Price Analysis and Outlook," AAEA Monographs, Agricultural and Applied Economics Association, number 337217, january.
    5. Brandow, G.E., 1977. "PART III. Policy for Commerical Agriculture, 1945-71," AAEA Monographs, Agricultural and Applied Economics Association, number 337215, january.

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