[go: up one dir, main page]
IDEAS home Printed from https://ideas.repec.org/p/ags/aaea02/19877.html
   My bibliography  Save this paper

Concentration, Market Power, And Cost Efficiency In The Corn Seed Industry

Author

Listed:
  • Fernandez-Cornejo, Jorge
  • Spielman, David J.
Abstract
The paper presents a model developed to examine the effects of industry concentration on market power and cost efficiency in the seed industry. In addition, the paper presents preliminary measures of the relative strengths of these effects for the case of the U.S. corn seed industry over the past 3 decades. The model uses conjectural elasticities and is estimated using data collected from USDA sources. The empirical results allow us to distinguish between the market power and cost effects of concentration, and to ascertain the tradeoff between the cost efficiency and market power resulting from higher concentration in the corn seed industry.

Suggested Citation

  • Fernandez-Cornejo, Jorge & Spielman, David J., 2002. "Concentration, Market Power, And Cost Efficiency In The Corn Seed Industry," 2002 Annual meeting, July 28-31, Long Beach, CA 19877, American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association).
    • Handle: RePEc:ags:aaea02:19877
    DOI: 10.22004/ag.econ.19877
    as

    Download full text from publisher

    File URL: https://ageconsearch.umn.edu/record/19877/files/sp02fe04.pdf
    Download Restriction: no
    File URL: https://libkey.io/10.22004/ag.econ.19877?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    References listed on IDEAS

    as
    1. Richard E. Just & Wen S. Chern, 1980. "Tomatoes, Technology, and Oligopsony," Bell Journal of Economics, The RAND Corporation, vol. 11(2), pages 584-602, Autumn.
    2. Iwata, Gyoichi, 1974. "Measurement of Conjectural Variations in Oligopoly," Econometrica, Econometric Society, vol. 42(5), pages 947-966, September.
    3. A. M. Azzam & E. Pagoulatos, 1990. "Testing Oligopolistic And Oligopsonistic Behaviour: An Application To The Us Meat‐Packing Industry," Journal of Agricultural Economics, Wiley Blackwell, vol. 41(3), pages 362-370, September.
    4. Schroeter, John R, 1988. "Estimating the Degree of Market Power in the Beef Packing Industry," The Review of Economics and Statistics, MIT Press, vol. 70(1), pages 158-162, February.
    5. Appelbaum, Elie, 1979. "Testing price taking behavior," Journal of Econometrics, Elsevier, vol. 9(3), pages 283-294, February.
    6. Gollop, Frank M. & Roberts, Mark J., 1979. "Firm interdependence in oligopolistic markets," Journal of Econometrics, Elsevier, vol. 10(3), pages 313-331, August.
    7. Zhigang Chen & Rebecca Lent, 1992. "Supply Analysis in an Oligopsony Model," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 74(4), pages 973-979.
    8. Azzeddine M. Azzam & John R. Schroeter, 1995. "The Tradeoff between Oligopsony Power and Cost Efficiency in Horizontal Consolidation: An Example from Beef Packing," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 77(4), pages 825-836.
    9. Preckel, Paul V. & Baker, Timothy G. & Eide, Jessica, 1997. "Seed Corn Tournament Contracts and Excess Nitrogen Application," 1997 Annual Meeting, July 13-16, 1997, Reno\ Sparks, Nevada 35861, Western Agricultural Economics Association.
    10. John Schroeter & Azzeddine Azzam, 1991. "Marketing Margins, Market Power, and Price Uncertainty," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 73(4), pages 990-999.
    11. Nicholas Kalaitzandonakes, 1997. "Mycogen: Building a Seed Company for the Twenty-first Century," Review of Agricultural Economics, Agricultural and Applied Economics Association, vol. 19(2), pages 453-462.
    12. repec:bla:econom:v:43:y:1976:i:171:p:267-74 is not listed on IDEAS
    13. Chu, Mei-Chin & Swinton, Scott M. & Batie, Sandra S. & Dobbins, Craig L., 1996. "Agricultural Production Contracts To Reduce Nitrate Leaching: A Whole-Farm Analysis," Staff Paper Series 11806, Michigan State University, Department of Agricultural, Food, and Resource Economics.
    14. R. Schmalensee & R. Willig (ed.), 1989. "Handbook of Industrial Organization," Handbook of Industrial Organization, Elsevier, edition 1, volume 2, number 2.
    15. repec:bla:jindec:v:45:y:1997:i:4:p:377-86 is not listed on IDEAS
    16. Ross, Douglas, 2000. "Antitrust Enforcement And Agriculture," Agricultural Outlook Forum 2000 33414, United States Department of Agriculture, Agricultural Outlook Forum.
    17. Appelbaum, Elie, 1982. "The estimation of the degree of oligopoly power," Journal of Econometrics, Elsevier, vol. 19(2-3), pages 287-299, August.
    18. Hayenga, Marvin L. & Kalaitzandonakes, Nicholas, 1999. "Structural Changes in the Biotechnology and Seed Industrial Complex; Theory and Evidence," Staff General Research Papers Archive 10404, Iowa State University, Department of Economics.
    19. Richard J. Sexton, 1990. "Imperfect Competition in Agricultural Markets and the Role of Cooperatives: A Spatial Analysis," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 72(3), pages 709-720.
    20. Azzeddine M. Azzam, 1997. "Measuring Market Power and Cost‐efficiency Effects of Industrial Concentration," Journal of Industrial Economics, Wiley Blackwell, vol. 45(4), pages 377-386, December.
    21. R. Schmalensee & R. Willig (ed.), 1989. "Handbook of Industrial Organization," Handbook of Industrial Organization, Elsevier, edition 1, volume 1, number 1.
    22. Joyce J. Wann & Sexton Richard J., 1992. "Imperfect Competition in Multiproduct Food Industries with Application to Pear Processing," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 74(4), pages 980-990.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Nolan, Elizabeth & Santos, Paulo, 2009. "Evidence for increasing concentration in plant breeding industries in the United States and the European Union," 2009 Conference (53rd), February 11-13, 2009, Cairns, Australia 48060, Australian Agricultural and Resource Economics Society.
    2. Richard D. Smart & Amer Ait Sidhoum & Johannes Sauer, 2022. "Decomposition of efficiency in the global seed industry: A nonparametric approach," Managerial and Decision Economics, John Wiley & Sons, Ltd., vol. 43(6), pages 2133-2147, September.
    3. Marin A. & Stubrin L.I., 2015. "Innovation in natural resources : New opportunities and new challenges. The case of the Argentinean seed industry," MERIT Working Papers 2015-015, United Nations University - Maastricht Economic and Social Research Institute on Innovation and Technology (MERIT).

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Unterschultz, James R. & Jeffrey, Scott R. & Quagrainie, Kwamena K., 2000. "Value-Adding 20 Billion By 2005: Impact At The Alberta Farm Gate," Project Report Series 24049, University of Alberta, Department of Resource Economics and Environmental Sociology.
    2. Perekhozhuk, Oleksandr, 2007. "Marktstruktur und Preisbildung auf dem ukrainischen Markt für Rohmilch," Studies on the Agricultural and Food Sector in Transition Economies, Leibniz Institute of Agricultural Development in Transition Economies (IAMO), volume 41, number 92322.
    3. Perekhozhuk, Oleksandr, 2013. "Moderne Konzepte zur Analyse der Preisbildung auf dem Faktormarkt mit unvollständigem Wettbewerb," EconStor Open Access Articles and Book Chapters, ZBW - Leibniz Information Centre for Economics, issue 4, pages 99-106.
    4. Oleksandr Perekhozhuk, 2013. "Modern Concepts for Pricing Analysis in Imperfect Competition Production Factor Market," Oblik i finansi, Institute of Accounting and Finance, issue 4, pages 99-106, December.
    5. Spielman, David J. & Kolady, Deepthi E. & Cavalieri, Anthony & Rao, N. Chandrasekhara, 2014. "The seed and agricultural biotechnology industries in India: An analysis of industry structure, competition, and policy options," Food Policy, Elsevier, vol. 45(C), pages 88-100.
    6. Holloway, Garth J. & Hertel, Thomas W., 1991. "Comparing Hypotheses About Competition," Working Papers 225867, University of California, Davis, Department of Agricultural and Resource Economics.
    7. Fernandez-Cornejo, Jorge, 2004. "The Seed Industry In U.S. Agriculture: An Exploration Of Data And Information On Crop Seed Markets, Regulation, Industry Structure, And Research And Development," Agricultural Information Bulletins 33671, United States Department of Agriculture, Economic Research Service.
    8. Wann, Joyce J. & Sexton, Richard J., 1991. "Imperfect Competition In Multiproduct Food Industries With Application To Pear Processing," 1991 Annual Meeting, August 4-7, Manhattan, Kansas 271370, American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association).
    9. Alexandre Gohin & Hervé Guyomard, 2000. "Measuring Market Power for Food Retail Activities: French Evidence," Journal of Agricultural Economics, Wiley Blackwell, vol. 51(2), pages 181-195, May.
    10. Ian Sheldon & Richard Sperling, 2003. "Estimating the Extent of Imperfect Competition in the Food Industry: What Have We Learned?," Journal of Agricultural Economics, Wiley Blackwell, vol. 54(1), pages 89-109, March.
    11. Ronchi, Loraine, 2006. "Fairtrade and market failures in agricultural commodity markets," Policy Research Working Paper Series 4011, The World Bank.
    12. Perloff, Jeffrey M, 1991. "Econometric analysis of imperfect competition and implications for trade research," Department of Agricultural & Resource Economics, UC Berkeley, Working Paper Series qt46w1j22d, Department of Agricultural & Resource Economics, UC Berkeley.
    13. Klaus Salhofer & Christoph Tribl & Franz Sinabell, 2012. "Market power in Austrian food retailing: the case of milk products," Empirica, Springer;Austrian Institute for Economic Research;Austrian Economic Association, vol. 39(1), pages 109-122, February.
    14. Weerahewa, Jeevika, 2003. "Estimating Market Power of Tea Processing Sector," Sri Lankan Journal of Agricultural Economics, Sri Lanka Agricultural Economics Association (SAEA), vol. 5, pages 1-15.
    15. Jones, Rodney & Purcell, Wayne & Driscoll, Paul & Peterson, Everett, 1996. "Issues and Cautions in Employing Behavioral Modeling Approaches to Test for Market Power," Staff Papers 232517, Virginia Polytechnic Institute and State University, Department of Agricultural and Applied Economics.
    16. Paolo Angelini & Nicola Cetorelli, 1999. "Bank competition and regulatory reform: the case of the Italian banking industry," Working Paper Series WP-99-32, Federal Reserve Bank of Chicago.
    17. Alexandre Gohin & Herve Guyomard & . Esr. Département d'Economie Et Sociologie Ruralesdijon, 1997. "Measuring market power for food retail activities : French evidence [Mesure du pouvoir de marché de l'activité alimentaire de détail en France]," Post-Print hal-02839368, HAL.
    18. Goo, Moon Mo, 1997. "The measurement of market power: short-run, long-run, and dynamic adjustment models," ISU General Staff Papers 1997010108000012985, Iowa State University, Department of Economics.
    19. repec:ags:vtaesp:232464 is not listed on IDEAS
    20. Boyd, Roy G. & Jung, Chulho & Seldon, Barry J., 1995. "The market structure of the US aluminum industry," Journal of Economics and Business, Elsevier, vol. 47(3), pages 293-301, August.
    21. Sascha A. Weber & Sven M. Anders, 2007. "Price rigidity and market power in German retailing," Managerial and Decision Economics, John Wiley & Sons, Ltd., vol. 28(7), pages 737-749.

    More about this item

    Keywords

    Marketing;

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:ags:aaea02:19877. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: AgEcon Search (email available below). General contact details of provider: https://edirc.repec.org/data/aaeaaea.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.