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Do U.S. marketing orders have much market power? An examination of the Almond Board of California

Author

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  • John M. Crespi

    (Department of Agricultural Economics, 342 Waters Hall, Kansas State University, Manhattan, KS 66506-4011. E-mail: jcrespi@agecon.ksu.edu)

  • Adriana Chacón-Cascante

    (Department of Agricultural Economics, 342 Waters Hall, Kansas State University, Manhattan, KS 66506-4011.)

Abstract

This review tests the conventional wisdom that U.S. marketing orders act as profit-maximizing cartels. It analyzes the marketing order for U.S. almonds in both the domestic and export markets. Such a case study is relevant to all U.S. marketing orders because the size and scope of the U.S. almond industry and the authority granted to a board of producers by the almond marketing order would seem to be conducive to profit-maximizing cartel behavior. Nevertheless, the authors find that the market power exerted by the Almond Board of California is significantly less than would be expected from a profit-maximizing cartel. [EconLit citations: L120, L430]. © 2004 Wiley Periodicals, Inc. Agribusiness 20: 1-15, 2004.

Suggested Citation

  • John M. Crespi & Adriana Chacón-Cascante, 2004. "Do U.S. marketing orders have much market power? An examination of the Almond Board of California," Agribusiness, John Wiley & Sons, Ltd., vol. 20(1), pages 1-15.
    • Handle: RePEc:wly:agribz:v:20:y:2004:i:1:p:1-15
    DOI: 10.1002/agr.10081
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    2. Kent D. Messer & Todd M. Schmit & Harry M. Kaiser, 2005. "Optimal Institutional Mechanisms for Funding Generic Advertising: An Experimental Analysis," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 87(4), pages 1046-1060.
    3. Cheng, Guo & Dharmasena, Senarath & Capps, Oral, Jr., 2017. "The Taste for Variety: Demand Analysis for Nut Products in the United States," Reports 285248, Texas A&M University, Agribusiness, Food, and Consumer Economics Research Center.
    4. Balagtas, Joseph Valdes & Masters, William J. & Zimmer, Timothy, 2005. "Cartel Pricing with Entry: the Experience of the Far West Marketing Order for Spearmint," 2005 Annual meeting, July 24-27, Providence, RI 19328, American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association).

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