Cartel Pricing with Entry: the Experience of the Far West Marketing Order for Spearmint
This paper documents the remarkable experience of the Far West mint producers in the operation of their marketing order. From 1993 to 2002, the marketing order witnessed a dramatic reduction its share of the Scotch spearmint market, as well as a reduction in both its price. We apply a model of a cartel facing a competitive fringe to describe the fall in the marketing order price as a logical consequence of increased world production of spearmint oil. We estimate an econometric model of the marketing order price and find that a 1-percent change in the marketing order's market share corresponds to a 0.8 percent change in the marketing order price.
|Date of creation:||2005|
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"Do U.S. marketing orders have much market power? An examination of the Almond Board of California,"
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- Crespi, John M. & Chacon-Cascante, Adriana, 2002. "Do U.S. Marketing Orders Have Much Market Power? An Examination Of The Almond Board Of California," 2002 Annual meeting, July 28-31, Long Beach, CA 19888, American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association).
- repec:cdl:agrebk:623332 is not listed on IDEAS
- Kwoka, John E, Jr, 1977. "Pricing under Federal Milk Market Regulation," Economic Inquiry, Western Economic Association International, vol. 15(3), pages 367-384, July. Full references (including those not matched with items on IDEAS)
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