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Economic Impact of Vertical Coordination: A Multi-stage, Multi-player Analysis

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  • Asirvatham, Jebaraj
  • Bhuyan, Sanjib

Abstract

Using explicit theoretical models, this study analyzes the economic impact of alternative vertical coordination mechanisms in a three-stages production-marketing chain where interactions among multiples players at each stage, among players at different stages, and the price, output and welfare impact of such strategic behavior were computed. Policy implications are discussed.

Suggested Citation

  • Asirvatham, Jebaraj & Bhuyan, Sanjib, 2004. "Economic Impact of Vertical Coordination: A Multi-stage, Multi-player Analysis," 2004 Annual meeting, August 1-4, Denver, CO 20400, American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association).
    • Handle: RePEc:ags:aaea04:20400
    DOI: 10.22004/ag.econ.20400
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    References listed on IDEAS

    as
    1. Greenhut, M L & Ohta, H, 1979. "Vertical Integration of Successive Oligopolists," American Economic Review, American Economic Association, vol. 69(1), pages 137-141, March.
    2. Bhuyan, Sanjib & Lopez, Rigoberto A., 1995. "Welfare Losses Under Alternative Oligopoly Regimes: The U.S. Food and Tobacco Manufacturing Industries," Journal of Agricultural and Applied Economics, Cambridge University Press, vol. 27(2), pages 577-587, December.
    3. A. M. Azzam & E. Pagoulatos, 1990. "Testing Oligopolistic And Oligopsonistic Behaviour: An Application To The Us Meat‐Packing Industry," Journal of Agricultural Economics, Wiley Blackwell, vol. 41(3), pages 362-370, September.
    4. Ward, Clement E., 1997. "Vertical Integration Comparison: Beef, Pork, and Poultry," 1997 Annual Meeting, July 13-16, 1997, Reno\ Sparks, Nevada 35759, Western Agricultural Economics Association.
    5. Stuart D. Frank & Dennis R. Henderson, 1992. "Transaction Costs as Determinants of Vertical Coordination in the U.S. Food Industries," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 74(4), pages 941-950.
    6. Royer, Jeffrey S. & Bhuyan, Sanjib, 1995. "Forward Integration by Farmer Cooperatives: Comparative Incentives and Impacts," Journal of Cooperatives, NCERA-210, vol. 10, pages 1-16.
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