Impacts from meatpacking firm mergers in an experimental market
The Fed Cattle Market Simulator (FCMS), an experimental market, was used to estimate impacts from two meatpacking firm mergers. Data were collected from two FCMS workshops with large agribusiness firms. Experimental mergers involved the two smaller packers in the market in one case and the two larger packers in another. During the merger period, market prices were significantly higher than prior to the merger in both cases. Following the dissolution, results were mixed. Management of the merged firms appeared to significantly affect how effectively merged packers operated, thus affecting both behavior and performance. For both mergers, profits of the merged firm were higher relative to profits of rival firms. Merged firms appeared to have achieved some synergies in procurement or economies of scope (i.e., multi-plant economies). An increased Herfindahl index was associated with lower fed cattle prices in one case and higher prices in the other. [EconLit citations: L130, L290, L660]. © 2002 John Wiley & Sons, Inc.
Volume (Year): 18 (2002)
Issue (Month): 2 ()
|Contact details of provider:|| Web page: http://onlinelibrary.wiley.com/journal/10.1002/(ISSN)1520-6297|
References listed on IDEAS
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- Anderson, John D. & Ward, Clement E. & Koontz, Stephen R. & Peel, Derrell S. & Trapp, James N., 1998. "Experimental Simulation Of Public Information Impacts On Price Discovery And Marketing Efficiency In The Fed Cattle Market," Journal of Agricultural and Resource Economics, Western Agricultural Economics Association, vol. 23(01), July.
- Tremblay, Victor J & Tremblay, Carol Horton, 1988. "The Determinants of Horizontal Acquisitions: Evidence from the U.S. Brewing Industry," Journal of Industrial Economics, Wiley Blackwell, vol. 37(1), pages 21-45, September.
- Clement E. Ward, 1993. "Comparative analysis of cattle slaughtering and fabricating costs," Agribusiness, John Wiley & Sons, Ltd., vol. 9(5), pages 441-451.
- Frank R. Lichtenberg & Donald Siegel, 1987. "Productivity and Changes in Ownership of Manufactoring Plants," Brookings Papers on Economic Activity, Economic Studies Program, The Brookings Institution, vol. 18(3), pages 643-684.
When requesting a correction, please mention this item's handle: RePEc:wly:agribz:v:18:y:2002:i:2:p:247-260. 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: (Wiley-Blackwell Digital Licensing)or (Christopher F. Baum)
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.
If references are entirely missing, you can add them using this form.
If the full references list an item that is present in RePEc, but the system did not link to it, you can help with 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 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.