IDEAS home Printed from https://ideas.repec.org/p/ags/eaae11/116012.html

Modelling Agricultural Commodity Markets under Imperfect Competition

Author

Listed:
  • Soregaroli, Claudio
  • Sckokai, Paolo

Abstract

In this paper, we develop a model that explains the exporters’ behaviour in international commodity markets considering explicitly the case of an imperfectly competitive structure of these markets. More specifically, drawing from the imperfect competition and trade literature, we derive price transmission equations between producer and consumer prices and between producer and export prices that can be included in large commodity models in order to verify how results of these models change assuming the imperfect competition hypothesis. The results obtained carrying out a simple simulation exercise, with two competing exporting countries and one importing region, show the relevance of assuming imperfect competition in commodity markets.

Suggested Citation

  • Soregaroli, Claudio & Sckokai, Paolo, "undated". "Modelling Agricultural Commodity Markets under Imperfect Competition," 2011 International Congress, August 30-September 2, 2011, Zurich, Switzerland 116012, European Association of Agricultural Economists.
    • Handle: RePEc:ags:eaae11:116012
    DOI: 10.22004/ag.econ.116012
    as

    Download full text from publisher

    File URL: https://ageconsearch.umn.edu/record/116012/files/Soregaroli_Claudio_402.pdf
    Download Restriction: no
    File URL: https://libkey.io/10.22004/ag.econ.116012?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    References listed on IDEAS

    as
    1. Fengxia Dong & Thomas L. Marsh & Kyle W. Stiegert, 2006. "State Trading Enterprises in a Differentiated Product Environment: The Case of Global Malting Barley Markets," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 88(1), pages 90-103.
    2. Taylor, C. Robert & Reichelderfer, Katherine H. & Johnson, Stanley R., 1993. "Agricultural Sector Models for the United States: Descriptions and Selected Policy Applications," Staff General Research Papers Archive 564, Iowa State University, Department of Economics.
    3. Richard J. Sexton & Ian Sheldon & Steve McCorriston & Humei Wang, 2007. "Agricultural trade liberalization and economic development: the role of downstream market power," Agricultural Economics, International Association of Agricultural Economists, vol. 36(2), pages 253-270, March.
    4. Goldberg, Pinelopi Koujianou & Knetter, Michael M., 1999. "Measuring the intensity of competition in export markets," Journal of International Economics, Elsevier, vol. 47(1), pages 27-60, February.
    5. Steve McCorriston & Donald MacLaren, 2007. "Deregulation as (Welfare Reducing) Trade Reform: the Case of the Australian Wheat Board," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 89(3), pages 637-650.
    6. Devadoss, Stephen & Westhoff, Patrick & Helmar, Michael D. & Grundmeier, Eric & Skold, Karl D. & Meyers, William H. & Johnson, Stanley R., 1993. "The FAPRI Modeling System: A Documentation Summary," Staff General Research Papers Archive 903, Iowa State University, Department of Economics.
    7. Steve McCorriston & Donald MacLaren, 2010. "Assessing the distortionary impact of state trading in China," Agricultural Economics, International Association of Agricultural Economists, vol. 41(3‐4), pages 329-335, May.
    8. Charles D. Kolstad & Anthony E. Burris, 1986. "Imperfectly Competitive Equilibria in International Commodity Markets," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 68(1), pages 27-36.
    9. Patterson, Paul M & Abbott, Philip C, 1994. "Further Evidence on Competition in the US Grain Export Trade," Journal of Industrial Economics, Wiley Blackwell, vol. 42(4), pages 429-437, December.
    10. Sexton, Richard J. & Lavoie, Nathalie, 2001. "Food processing and distribution: An industrial organization approach," Handbook of Agricultural Economics, in: B. L. Gardner & G. C. Rausser (ed.), Handbook of Agricultural Economics, edition 1, volume 1, chapter 15, pages 863-932, Elsevier.
    11. Hamilton, Stephen F. & Stiegert, Kyle W., 2002. "An empirical test of the rent-shifting hypothesis: the case of state trading enterprises," Journal of International Economics, Elsevier, vol. 58(1), pages 135-157, October.
    12. Margherita Scoppola, 2007. "Disciplining exporting state trading enterprises under economies of scale and oligopoly," European Review of Agricultural Economics, Oxford University Press and the European Agricultural and Applied Economics Publications Foundation, vol. 34(4), pages 429-459, December.
    13. McCorriston, Steve & MacLaren, Donald, 2007. "Do state trading exporters distort trade?," European Economic Review, Elsevier, vol. 51(1), pages 225-246, January.
    14. H. Alan Love & Endah Murniningtyas, 1992. "Measuring the Degree of Market Power Exerted by Government Trade Agencies," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 74(3), pages 546-555.
    15. Margherita Scoppola, 2007. "Economies of scale and market structure in international grain trade," Agricultural Economics, International Association of Agricultural Economists, vol. 37(2‐3), pages 277-291, September.
    16. Fengxia Dong & Thomas L. Marsh & Kyle W. Stiegert, 2003. "State Trading Enterprises in a Differentiated Environment: The Case of Global Malting Barley Markets," Food and Agricultural Policy Research Institute (FAPRI) Publications (archive only) 03-wp350, Center for Agricultural and Rural Development (CARD) at Iowa State University.
    17. Devadoss, Stephen & Westhoff, Patrick & Helmar, Michael D. & Grundmeier, Eric & Skold, Karl D. & Meyers, William H. & Johnson, Stanley R., 1993. "The FAPRI Modeling System: A Documentation Summary," Staff General Research Papers Archive 10871, Iowa State University, Department of Economics.
    18. Daniel Mirza, 2006. "How Much Does Trade Contribute to Market Structure?," Economica, London School of Economics and Political Science, vol. 73(289), pages 59-74, February.
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Margherita Scoppola, 2007. "Economies of scale and market structure in international grain trade," Agricultural Economics, International Association of Agricultural Economists, vol. 37(2‐3), pages 277-291, September.
    2. Reimer, Jeffrey J. & Stiegert, Kyle W., 2006. "Evidence on Imperfect Competition and Strategic Trade Theory," Staff Papers 12609, University of Wisconsin-Madison, Department of Agricultural and Applied Economics.
    3. Moritz Paulus & Johannes Trueby & Christian Growitsch, 2011. "Nations as Strategic Players in Global Commodity Markets: Evidence from World Coal Trade," EWI Working Papers 2011-4, Energiewirtschaftliches Institut an der Universitaet zu Koeln (EWI).
    4. Kerstin Uhl & Oleksandr Perekhozhuk & Thomas Glauben, 2016. "Price Discrimination in Russian Wheat Exports: Evidence from Firm-level Data," Journal of Agricultural Economics, Wiley Blackwell, vol. 67(3), pages 722-740, September.
    5. Pustovit, Nataliya & Schmitz, P. Michael, 2003. "Impact Of Agricultural Protection In Oecd-Countries On South African Agriculture," 2003 Annual Meeting, August 16-22, 2003, Durban, South Africa 25828, International Association of Agricultural Economists.
    6. Mia Mikic, 2007. "Studies in Trade and Investment - AGRICULTURAL TRADE - PLANTING THE SEEDS OF REGIONAL LIBERALIZATION IN ASIA," STUDIES IN TRADE AND INVESTMENT, United Nations Economic and Social Commission for Asia and the Pacific (ESCAP), volume 60, number tipub2451, july-dece.
    7. Carter, Colin A. & MacLaren, Donald & Yilmaz, Alper, 1999. "How Competitive Is The World Wheat Market?," Working Papers 11973, University of California, Davis, Department of Agricultural and Resource Economics.
    8. McCorriston, Steve & MacLaren, Donald, 2005. "Single-desk state trading exporters," European Journal of Political Economy, Elsevier, vol. 21(2), pages 503-524, June.
    9. Soregaroli, Claudio & Sckokai, Paolo & Moro, Daniele, 2011. "Agricultural policy modelling under imperfect competition," Journal of Policy Modeling, Elsevier, vol. 33(2), pages 195-212, March.
    10. Bourgeon, Jean-Marc & Jean, Sebastien & Maillet, Anais, 2015. "State Trading Enterprises and Price Stabilization," 2015 Conference, August 9-14, 2015, Milan, Italy 211367, International Association of Agricultural Economists.
    11. Stiegert, Kyle W. & Wang, Shinn-Shyr, 2003. "Imperfect Competition And Strategic Trade Theory: What Have We Learned," Working Papers 14589, International Agricultural Trade Research Consortium.
    12. Reimer, Jeffrey J. & Steigert, Kyle W., 2006. "Imperfect Competition and Strategic Trade Theory: What Have We Learned?," Working Papers 201528, University of Wisconsin-Madison, Department of Agricultural and Applied Economics, Food System Research Group.
    13. B. Stephen Labson & Gordon C. Rausser, 1992. "Modeling Phased Reduction of Distortionary Policies in the U.S. Wheat Market under Alternative Macroeconomic Environments," Center for Agricultural and Rural Development (CARD) Publications 90-gatt11, Center for Agricultural and Rural Development (CARD) at Iowa State University.
    14. McCorriston, Steve & MacLaren, Donald, 2001. "The Trade Distorting Effect Of Single-Desk State Trading Exporters," 2001 Conference (45th), January 23-25, 2001, Adelaide, Australia 125790, Australian Agricultural and Resource Economics Society.
    15. Uttam Kumar Deb, 2007. "Agricultural Trade Protection: A Perspective from India," ARTNeT Policy Briefs 11, United Nations Economic and Social Commission for Asia and the Pacific (ESCAP).
    16. Jeffrey D. McDonald & Daniel A. Sumner, 2003. "The Influence of Commodity Programs on Acreage Response to Market Price: With an Illustration Concerning Rice Policy in the United States," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 85(4), pages 857-871.
    17. repec:ags:icar24:344972 is not listed on IDEAS
    18. Suphanit Piyapromdee & Russell Hillberry & Donald MacLaren, 2014. "‘Fair trade’ coffee and the mitigation of local oligopsony power," European Review of Agricultural Economics, Oxford University Press and the European Agricultural and Applied Economics Publications Foundation, vol. 41(4), pages 537-559.
    19. MacLaren, Donald & McCorriston, Steve, 2007. "An Assessment of the Economic Effects of COFCO," 2007: China's Agricultural Trade: Issues and Prospects Symposium, July 2007, Beijing, China 55026, International Agricultural Trade Research Consortium.
    20. Kaittisak Kumse & Nobuhiro Suzuki & Takeshi Sato, 2020. "Does oligopsony power matter in price support policy design? Empirical evidence from the Thai Jasmine rice market," Agricultural Economics, International Association of Agricultural Economists, vol. 51(3), pages 373-385, May.

    More about this item

    Keywords

    ;
    ;

    NEP fields

    This paper has been announced in the following NEP Reports:

    Statistics

    Access and download statistics

    Corrections

    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:eaae11:116012. See general information about how to correct material in RePEc.

    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 bibliographic 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.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: AgEcon Search (email available below). General contact details of provider: https://edirc.repec.org/data/eaaeeea.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.