IDEAS home Printed from https://ideas.repec.org/a/oup/ajagec/v79y1997i3p872-879.html
   My bibliography  Save this article

Nonparametric Tests of Profit Maximization in Oligopoly with Application to the Beef Packing Industry

Author

Listed:
  • Paul J. Driscoll
  • S. Murthy Kambhampaty
  • Wayne D. Purcell

Abstract

In this paper, we develop new, nonparametric methods of testing for static profit maximization given noncompetitive behavior. Repeated application of the test yields “maximum likelihood” estimates of the degree of noncompetitive behavior. Using plant-level data, these newly developed nonparametric methods are employed to test the hypothesis that beef packers are profit maximizers and to measure the extent to which packers influence prices in fed-cattle markets. Copyright 1997, Oxford University Press.

Suggested Citation

  • Paul J. Driscoll & S. Murthy Kambhampaty & Wayne D. Purcell, 1997. "Nonparametric Tests of Profit Maximization in Oligopoly with Application to the Beef Packing Industry," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 79(3), pages 872-879.
  • Handle: RePEc:oup:ajagec:v:79:y:1997:i:3:p:872-879
    as

    Download full text from publisher

    File URL: http://hdl.handle.net/10.2307/1244428
    Download Restriction: Access to full text is restricted to subscribers.

    As the access to this document is restricted, you may want to search for a different version of it.

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Koontz, Stephen R. & Purcell, Wayne D., 2000. "Research Programs To Address Price Discovery Concerns," 2000 Annual Meeting, June 29-July 1, 2000, Vancouver, British Columbia 36421, Western Agricultural Economics Association.
    2. Chanjin Chung & Emílio Tostão, 2009. "Nonparametric Estimation of Oligopsony Power in First-Price Auction," Journal of Agricultural Economics, Wiley Blackwell, vol. 60(2), pages 318-333.
    3. Raper, Kellie Curry & Noelke, Corinna M., 2001. "Deterministic Nonparametric Market Power Tests: An Empirical Investigation," Staff Papers 11757, Michigan State University, Department of Agricultural, Food, and Resource Economics.
    4. Noelke, Corinna M. & Raper, Kellie Curry, 1998. "Parametric And Nonparametric Market Power Tests: An Empirical Investigation," 1998 Annual meeting, August 2-5, Salt Lake City, UT 20875, American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association).
    5. Ronchi, Loraine, 2006. "Fairtrade and market failures in agricultural commodity markets," Policy Research Working Paper Series 4011, The World Bank.
    6. Kellie Curry Raper & Corinna Noelke, 2004. "Determining market power exertion between buyers and sellers: are nonparametrics a viable alternative?," Applied Economics, Taylor & Francis Journals, vol. 36(20), pages 2265-2274.
    7. Weninger, Quinn & Hunnicutt, Lynn, 1999. "Testing for Market Power in Beef Packing: Where Are We and What's Next?," Staff General Research Papers Archive 10575, Iowa State University, Department of Economics.
    8. Noelke, Corinna M. & Raper, Kellie Curry, 1999. "Nonstructural And Statistical Nonparametric Market Power Tests: An Empirical Investigation," 1999 Annual meeting, August 8-11, Nashville, TN 21645, American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association).
    9. Stephen R. Koontz & John D. Lawrence, 2010. "Impacts of alternative marketing agreement cattle procurement on packer costs, gross margins, and profits: evidence from plant-level profit and loss data," Agribusiness, John Wiley & Sons, Ltd., vol. 26(1), pages 1-24.

    More about this item

    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:oup:ajagec:v:79:y:1997:i:3:p:872-879. See general information about how to correct material in RePEc.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Oxford University Press) or (Christopher F. Baum). General contact details of provider: http://edirc.repec.org/data/aaeaaea.html .

    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.

    We have no references for this item. You can help adding them by using 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.

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

    IDEAS is a RePEc service hosted by the Research Division of the Federal Reserve Bank of St. Louis . RePEc uses bibliographic data supplied by the respective publishers.