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Competition in the Japanese wholesale potato market

Author

Listed:
  • Yusuke Higaki

    (Consultant, 5-6-13, Miyamae, Suginami, Tokyo, Japan, E-mail: HigakiYusuke@aol.com)

  • Kisan Gunjal

    (Department of Agricultural Economics, McGill University, Macdonald Campus, 21,111 Lakeshore Road, Ste Anne de Bellevue, Quebec, CANADA H9X 3V9. E-mail: Gunjal@macdonald.mcgill.ca http:||www.agrenv.mcgill.ca|agrecon|)

  • Garth Coffin

    (Nova Scotia Agricultural College, Truro, N.S., Canada)

Abstract

The Japanese potato market is characterized by regional domination of production and marketing by strong cooperatives exhibiting a high degree of concentration with potential oligopolistic market power. In this research, the level of competition in the Japanese potato market was evaluated using conjectural variations technique on the time series data from 1989 to 1995. Four wholesale markets with eight production sources were analyzed. From the empirical analysis, it can be concluded that, despite the high level of concentration in production, all producing regions including the dominant producer, Hokkaido, seem to have behaved competitively. However, the degree of competition is found to vary depending on the season. Hokkaido, the leading producer, may be setting prices close to marginal costs under pressure of competition from foreign suppliers. {Econ-Lit citations: L100, L130] © 2001 John Wiley & Sons, Inc.

Suggested Citation

  • Yusuke Higaki & Kisan Gunjal & Garth Coffin, 2001. "Competition in the Japanese wholesale potato market," Agribusiness, John Wiley & Sons, Ltd., vol. 17(3), pages 319-332.
    • Handle: RePEc:wly:agribz:v:17:y:2001:i:3:p:319-332
    DOI: 10.1002/agr.1019
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    References listed on IDEAS

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    1. Iwata, Gyoichi, 1974. "Measurement of Conjectural Variations in Oligopoly," Econometrica, Econometric Society, vol. 42(5), pages 947-966, September.
    2. Nobuhiro Suzuki & John E. Lenz & Olan D. Forker, 1993. "A Conjectural Variations Model of Reduced Japanese Milk Price Supports," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 75(1), pages 210-218.
    3. Appelbaum, Elie, 1982. "The estimation of the degree of oligopoly power," Journal of Econometrics, Elsevier, vol. 19(2-3), pages 287-299, August.
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