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A dynamic model of oligopoly in the coffee export market

Author

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  • Karp, Larry S.
  • Perloff, Jeffrey M.

Abstract

A linear-quadratic, dynamic feedback oligopoly model that nests various market structures is used to estimate the degree of competitiveness and the adjustment paths of the two largest coffee exporters, Brazil and Colombia. Their estimated behavior is relatively competitive. This subgame perfect dynamic model is-compared to a standard static oligopoly model and the open-loop model (the dynamic generalization of the standard static model). Both classical and Bayesian tests of open-loop and feedback dynamic models are reported.

Suggested Citation

  • Karp, Larry S. & Perloff, Jeffrey M., 1990. "A dynamic model of oligopoly in the coffee export market," CUDARE Working Papers 6093, University of California, Berkeley, Department of Agricultural and Resource Economics.
    • Handle: RePEc:ags:ucbecw:6093
    DOI: 10.22004/ag.econ.6093
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