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|
|Date of revision:|
|Contact details of provider:|| Postal: 555 East Wells Street, Suite 1100, Milwaukee, Wisconsin 53202|
Phone: (414) 918-3190
Fax: (414) 276-3349
Web page: http://www.aaea.org
More information through EDIRC
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.:
- repec:cdl:agrebk:623332 is not listed on IDEAS
- 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).
- 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.
- Filson, Darren, et al, 2001.
"Market Power and Cartel Formation: Theory and an Empirical Test,"
Journal of Law and Economics,
University of Chicago Press, vol. 44(2), pages 465-80, October.
- Darren Filson & Edward Keen & Eric Fruits & Thomas E. Borcherding, . "Market Power and Cartel Formation: Theory and an Empirical Test," Claremont Colleges Working Papers 2000-31, Claremont Colleges.
- Berck, Peter & Perloff, Jeffrey M, 1984.
"A Dynamic Analysis of Marketing Orders, Voting , and Welfare,"
Department of Agricultural & Resource Economics, UC Berkeley, Working Paper Series
qt3d09786w, Department of Agricultural & Resource Economics, UC Berkeley.
- Peter Berck & Jeffrey M. Perloff, 1985. "A Dynamic Analysis of Marketing Orders, Voting, and Welfare," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 67(3), pages 487-496.
- Kwoka, John E, Jr, 1977. "Pricing under Federal Milk Market Regulation," Economic Inquiry, Western Economic Association International, vol. 15(3), pages 367-84, July.
- Lee, Hyunok & Alston, Julian M. & Carman, Hoy F. & Sutton, William R., 1996. "Mandated Marketing Programs For California Commodities," Information Series 11919, University of California, Davis, Giannini Foundation.
When requesting a correction, please mention this item's handle: RePEc:ags:aaea05:19328. 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)
If references are entirely missing, you can add them using this form.