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Testing for Oligopsony Power in the US Green Skin Avocado Market

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  • Evans Edward
  • H. Ballen Fredy

    (Food and Resource Economics Department, University of Florida TREC, Homestead, FL, USA)

Abstract

The United States is the main destination for Dominican Republic (DR) green skin avocado exports accounting for over 70 % of the total DR green skin avocado exports from 2004 to 2013. Given the US dominant position in the US-DR green skin avocado trade, the United States may have an incentive to deviate from the competitive markets model, and behave as an oligopsonist. The present study seeks to assess potential oligopsonistic behavior in the US green skin avocado import market. A residual supply model was specified and estimated. Findings indicate that despite its dominant position in the world avocado trade, there is no empirical evidence that indicates that the United States exercises market power over DR exports of green skin avocados.

Suggested Citation

  • Evans Edward & H. Ballen Fredy, 2016. "Testing for Oligopsony Power in the US Green Skin Avocado Market," Journal of Agricultural & Food Industrial Organization, De Gruyter, vol. 14(1), pages 43-50, May.
    • Handle: RePEc:bpj:bjafio:v:14:y:2016:i:1:p:43-50:n:10
    DOI: 10.1515/jafio-2015-0014
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    References listed on IDEAS

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    Cited by:

    1. Kaittisak Kumse & Nobuhiro Suzuki & Takeshi Sato, 2020. "Does oligopsony power matter in price support policy design? Empirical evidence from the Thai Jasmine rice market," Agricultural Economics, International Association of Agricultural Economists, vol. 51(3), pages 373-385, May.

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