The pricing of innovations: An application to specialized corn traits
One concern regarding the growing agricultural biotechnology industry is the potential for these firms to exercise market power when pricing their innovations, which would affect the magnitude and distribution of resulting welfare gains. We argue that competition across production systems limits the exercise of such market power by suppliers. In order to examine the demand for these innovations, we evaluate the producer's returns to planting patented seed innovations, using a calibrated optimization model of a south-central Iowa corn producer's adoption decision. Overall, our results suggest that patented seed innovations do not increase the market power of biotechnology firms in the relevant market for production systems. [EconLit subject codes: L190, O330, Q120] © 2002 Wiley Periodicals, Inc.
Volume (Year): 18 (2002)
Issue (Month): 3 ()
|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.:
- Giancarlo Moschini & Harvey Lapan & Andrei Sobolevsky, 2000.
"Roundup ready® soybeans and welfare effects in the soybean complex,"
John Wiley & Sons, Ltd., vol. 16(1), pages 33-55.
- Moschini, GianCarlo & Lapan, Harvey E. & Sobolevsky, Andrei, 2000. "Roundup Ready Soybeans and Welfare Effects in the Soybean Complex," Staff General Research Papers Archive 1799, Iowa State University, Department of Economics.
- William D. McBride & Nora Books, 2000.
"Survey evidence on producer use and costs of genetically modified seed,"
John Wiley & Sons, Ltd., vol. 16(1), pages 6-20.
- McBride, William D. & Books, Nora, 2000. "Survey Evidence On Producer Use And Costs Of Genetically Modified Seed," Proceedings:Transitions in Agbiotech: Economics of Strategy and Policy, June 24-25, 1999, Washington, D.C. 26009, Regional Research Project NE-165 Private Strategies, Public Policies, and Food System Performance.
- Renkoski, Matthew A., 1997. "Marketing Strategies Of Biotechnology Firms: Implications For U.S. Agriculture," Journal of Agricultural and Applied Economics, Southern Agricultural Economics Association, vol. 29(01), July.
- Begemann, Brett D., 1997. "Competitive Strategies Of Biotechnology Firms: Implications For U.S. Agriculture," Journal of Agricultural and Applied Economics, Southern Agricultural Economics Association, vol. 29(01), July.
When requesting a correction, please mention this item's handle: RePEc:wly:agribz:v:18:y:2002:i:3:p:333-348. 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 references are entirely missing, you can add them using this form.