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Competition Policy in Agriculture: A Review of Methods

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  • MacAulay, T. Gordon

Abstract

The nature of the competition policy public benefit tests, applied to various agricultural industries, is reviewed. Then, various analytical techniques that have been applied to the assessment of the public benefit test are examined. These techniques include analysis of price premiums, consideration of pooling and averaging, pricing to market tests, what-if scenarios, market power analysis, and price discriminating monopolist models. Some of the advantages and disadvantages of these approaches are summarised. Generally, all of these approaches have various strengths and a number of weaknesses so that the case for the assessment of costs and benefits must substantially depend on the logic of the effects of the regulation rather than the results of any particular model.

Suggested Citation

  • MacAulay, T. Gordon, 2000. "Competition Policy in Agriculture: A Review of Methods," 2000 Conference (44th), January 23-25, 2000, Sydney, Australia 123697, Australian Agricultural and Resource Economics Society.
    • Handle: RePEc:ags:aare00:123697
    DOI: 10.22004/ag.econ.123697
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    References listed on IDEAS

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    1. MacAulay, T. Gordon & Owen, Kate M. & O'Donnell, Christopher J., 1999. "Issues in Modelling the Australian Dairy Industry: Joint Products, Market Power and Deregulation," 1999 Conference (43th), January 20-22, 1999, Christchurch, New Zealand 123833, Australian Agricultural and Resource Economics Society.
    2. repec:bla:ecorec:v:73:y:1997:i:222:p:270-84 is not listed on IDEAS
    3. Quiggin, John, 1998. "Micro Gains from Micro Reform," Economic Analysis and Policy, Elsevier, vol. 28(1), pages 1-16, March.
    4. Garth J. Holloway, 1991. "The Farm-Retail Price Spread in an Imperfectly Competitive Food Industry," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 73(4), pages 979-989.
    5. Quiggin, John C., 1988. "Pooling," 1988 Conference (32nd), February 8-11, 1988, Melbourne, Australia 144354, Australian Agricultural and Resource Economics Society.
    6. MacAulay, T. Gordon & Richards, R., 1997. "Models for the Analysis of Barley Marketing," 1997 Conference (41st), January 22-24, 1997, Gold Coast, Australia 136245, Australian Agricultural and Resource Economics Society.
    7. Godden, David P., 1999. "A Century of Agricultural Progress in Australia," 1999 Conference (43th), January 20-22, 1999, Christchurch, New Zealand 156988, Australian Agricultural and Resource Economics Society.
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