IDEAS home Printed from
   My bibliography  Save this paper

The United States In The Global Soybean Market: Where Do We Go From Here?


  • Bolling, H. Christine
  • Somwaru, Agapi
  • Kruse, Jamie Brown


This study applies the concept of a dynamic dominant-firm oligopoly model to the international soybean market. It has been suggested that the international soybean market should be viewed as an oligopoly among exporting nations. Consistent with Gaskins (1971) dynamic dominant firm model, our results indicate that the current U.S. loan deficiency-payment prices and their predecessors created an environment in which smaller (fringe) exporters could prosper and expand. The reduction of U.S. market share is thus a logical outcome of an "optimally managed decline" a la Gaskins. The study finds U.S. market share to decline at a reducing rate and predicts U.S. market share eventually to stabilize, given the expanding international market for soybeans and products. Recognition of the structure of international soybean market has policy implications for the 2002 farm program as the classic dominant firm model suggests.

Suggested Citation

  • Bolling, H. Christine & Somwaru, Agapi & Kruse, Jamie Brown, 2001. "The United States In The Global Soybean Market: Where Do We Go From Here?," 2001 Annual meeting, August 5-8, Chicago, IL 20698, American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association).
  • Handle: RePEc:ags:aaea01:20698

    Download full text from publisher

    File URL:
    Download Restriction: no

    References listed on IDEAS

    1. Ann M. Carlos & Jamie Brown Kruse, 1996. "The decline of the Royal African Company: fringe firms and the role of the charter," Economic History Review, Economic History Society, vol. 49(2), pages 291-313, May.
    2. Gaskins, Darius Jr., 1971. "Dynamic limit pricing: Optimal pricing under threat of entry," Journal of Economic Theory, Elsevier, vol. 3(3), pages 306-322, September.
    3. Carter, Colin A. & MacLaren, Donald, 1994. "Alternative Oligopolistic Structures In International Commodity Markets: Price Or Quantity Competition?," Working Papers 51223, International Agricultural Trade Research Consortium.
    Full references (including those not matched with items on IDEAS)


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

    Cited by:

    1. Bolling, H. Christine, 2004. "Measuring Market Integration In The Global Economy," 2004 Annual meeting, August 1-4, Denver, CO 20269, American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association).


    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:ags:aaea01:20698. 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: (AgEcon Search). General contact details of provider: .

    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 CitEc recognized a reference but did not link an item in RePEc 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 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.