Measuring the Intensity of Competition in the Japanese Beef Market
A residual demand model for beef exports to Japan is specified and estimated. The objective is to estimate the extent of market power. It is assumed that each exporting country faces a downward-sloping residual demand curve, which reflects the market demand minus the supplies of competitors, and tha...
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Published in | Journal of agricultural and applied economics Vol. 36; no. 1; pp. 113 - 121 |
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Main Authors | , |
Format | Journal Article |
Language | English |
Published |
New York, USA
Cambridge University Press
01.04.2004
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Subjects | |
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Abstract | A residual demand model for beef exports to Japan is specified and estimated. The objective is to estimate the extent of market power. It is assumed that each exporting country faces a downward-sloping residual demand curve, which reflects the market demand minus the supplies of competitors, and that exporters maximize profit through their output decisions. The analysis is disaggregated by beef cut and form to capture the variation by beef market segments. The results indicate that the highest markup of price over marginal cost belongs to U.S. frozen ribs, the only indication of market power by U.S. exporters. Canada is found to have limited market power, whereas Australia and New Zealand enjoy some market power, including five chilled beef categories. |
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AbstractList | A residual demand model for beef exports to Japan is specified and estimated. The objective is to estimate the extent of market power. It is assumed that each exporting country faces a downward-sloping residual demand curve, which reflects the market demand minus the supplies of competitors, and that exporters maximize profit through their output decisions. The analysis is disaggregated by beef cut and form to capture the variation by beef market segments. The results indicate that the highest markup of price over marginal cost belongs to U.S. frozen ribs, the only indication of market power by U.S. exporters. Canada is found to have limited market power, whereas Australia and New Zealand enjoy some market power, including five chilled beef categories. |
Author | Reed, Michael R. Saghaian, Sayed H. |
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Cites_doi | 10.1016/0047-2727(95)80006-U 10.1016/S0022-1996(98)00015-4 10.2202/1542-0485.1004 10.1016/S0167-7187(88)80012-2 |
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References | S1074070800021891_ref021 S1074070800021891_ref022 S1074070800021891_ref011 S1074070800021891_ref001 S1074070800021891_ref002 S1074070800021891_ref013 Hayes (S1074070800021891_ref012) 1990 Erikson (S1074070800021891_ref007) 1997 Krugman (S1074070800021891_ref018) 1987 Knetter (S1074070800021891_ref017) 1993; 83 Khan (S1074070800021891_ref015) 1990 Longworth (S1074070800021891_ref020) 1984 Kerr (S1074070800021891_ref014) 1994 Gil-Pareja (S1074070800021891_ref008) 2000; 136 Knetter (S1074070800021891_ref016) 1989; 79 Le (S1074070800021891_ref019) 1997 Bresnahan (S1074070800021891_ref004) 1989; 2 Comeau (S1074070800021891_ref005) 1997 S1074070800021891_ref009 S1074070800021891_ref003 Goldberg (S1074070800021891_ref010) 1997; 25 S1074070800021891_ref006 |
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SubjectTerms | Accounting Beef chilled meats Competition cost analysis Costs demand Demand curves econometric models Elasticity of demand estimation Exports F12 Fiscal years frozen meat Investigations Japan L13 market power market share Market shares markets Prices Product differentiation Q17 residual demand Suppliers supply |
Title | Measuring the Intensity of Competition in the Japanese Beef Market |
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