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The Distribution of Rents in Supply Chain Industries: The Case of High Oil Corn

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  • Harrington, David H.
  • Jefferson-Moore, Kenrett Y.

Abstract

Value-enhanced crops (VEC's) have been the focus of "second-generation" genetically modified (GM) crops. The market power granted by intellectual property rights (IPR) and the use of contractual arrangements in VEC gene and seed production have fostered a move toward tightly-aligned supply chain industries. This paper suggests and tests an analytical methodology for examining a number of issues in tightly-aligned supply chain industries: (1) the distributions of potential monopolistic and monopsonistic rents, (2) choices of licensing intellectual property versus in-house seed production and distribution (3) implications of alternative marketing strategies and elasticities of demand on the magnitudes of rents, and (4) determining impacts on different stages within the supply chain and on substitute commodities. The high-oil corn industry is used as a case study.

Suggested Citation

  • Harrington, David H. & Jefferson-Moore, Kenrett Y., 2006. "The Distribution of Rents in Supply Chain Industries: The Case of High Oil Corn," 2006 Annual Meeting, August 12-18, 2006, Queensland, Australia 25579, International Association of Agricultural Economists.
    • Handle: RePEc:ags:iaae06:25579
    DOI: 10.22004/ag.econ.25579
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    References listed on IDEAS

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    Cited by:

    1. Harrington, David H. & Dubman, Robert, 2008. "Equilibrium Displacement Mathematical Programming Models: Methodology and Model of the U.S. Agricultural Sector," Technical Bulletins 184313, United States Department of Agriculture, Economic Research Service.

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