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Implications of Increased Regional Concentration and Oligopsonistic Coordination in the Beef Packing Industry

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  • Azzam, Azzeddine M.
  • Schroeter, John R.

Abstract

This article proposes an oligopsony pricing model for projecting the effects of increased concentration or oligopsonistic coordination in beef packing using simulation methods. The model combines an explicit behavioral theory of packing firms with an attempt to respect the regional scope of cattle procurement markets. Our results indicate less danger of falling cattle prices, as a result of increased packer concentration or coordination, than do results from conventional econometric studies.

Suggested Citation

  • Azzam, Azzeddine M. & Schroeter, John R., 1991. "Implications of Increased Regional Concentration and Oligopsonistic Coordination in the Beef Packing Industry," ISU General Staff Papers 199101010800001084, Iowa State University, Department of Economics.
    • Handle: RePEc:isu:genstf:199101010800001084
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