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Environmental Regulation, Market Power and Price Discrimination in the Agricultural Chemical Industry

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  • Smith, Vincent H.
  • Johnson, James B.

Abstract

Chemical companies generally support environmental regulatory segregation Canadian and U.S. agricultural chemical markets, apparently because it enables them to practice third order price discrimination. This study provides new cross section evidence that suggests price discrimination is practiced. We examine the potential implications chemical market desegregation for agricultural chemical prices, farmer welfare, and consumer welfare.

Suggested Citation

  • Smith, Vincent H. & Johnson, James B., 2005. "Environmental Regulation, Market Power and Price Discrimination in the Agricultural Chemical Industry," 2005 Annual meeting, July 24-27, Providence, RI 19520, American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association).
    • Handle: RePEc:ags:aaea05:19520
    DOI: 10.22004/ag.econ.19520
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    File URL: https://ageconsearch.umn.edu/record/19520/files/sp05sm02.pdf
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    References listed on IDEAS

    as
    1. Smith, Vincent H. & Johnson, James B., 2004. "Agricultural Chemical Prices in Canada and the United States: A Case Study of Alberta and Montana," Agricultural Marketing Policy Papers 29155, Montana State University, Department of Agricultural Economics and Economics, Agricultural Marketing Policy Center.
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    5. Freshwater, David, 2003. "Free Trade, Pesticide Regulation and NAFTA Harmonization," Estey Centre Journal of International Law and Trade Policy, Estey Centre for Law and Economics in International Trade, vol. 4(1), pages 1-26.
    6. Vincent H. Smith & Barry K. Goodwin, 1996. "Crop Insurance, Moral Hazard, and Agricultural Chemical Use," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 78(2), pages 428-438.
    7. Colin A. Carter & R.M.A. Loyns & Derek Berwald, 1998. "Domestic Costs of Statutory Marketing Authorities: The Case of the Canadian Wheat Board," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 80(2), pages 313-324.
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    9. Stole, Lars A., 2007. "Price Discrimination and Competition," Handbook of Industrial Organization, in: Mark Armstrong & Robert Porter (ed.), Handbook of Industrial Organization, edition 1, volume 3, chapter 34, pages 2221-2299, Elsevier.
    10. Sofronis K. Clerides, 2004. "Price Discrimination with Differentiated Products: Definition and Identification," Economic Inquiry, Western Economic Association International, vol. 42(3), pages 402-412, July.
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    Cited by:

    1. Taylor, Richard & Koo, Won W. & Mattson, Jeremy, 2005. "Economic Analysis of the Free Trade of Agricultural Chemicals Between the United States and Canada," Agricultural Policy Briefs 228972, North Dakota State University, Center for Agricultural Policy and Trade Studies.

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    Environmental Economics and Policy;

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