IDEAS home Printed from https://ideas.repec.org/a/bpj/bjafio/v14y2016i1p69-79n2.html
   My bibliography  Save this article

Modeling US Farmer Soybean Seed Choice with Path Dependencies: Inevitable Patented Seed Market Dominance?

Author

Listed:
  • Jenson Robert A.

    (Agricultural and Applied Economics, University of Wyoming, Laramie, WY, USA)

  • McIntosh Christopher Richard

    (Economics, University of Minnesota Duluth, 330H LSBE 1318 Kirby Drive, Duluth, MN 55812, USA)

Abstract

The growth in the US market share of soybeans including Monsanto’s patented “Roundup Ready” (RR1 and RR2) traits has been extraordinary. This growth is likely due to a number of factors that affect the number of competitor firms and individual farmers’ seed choices. This study outlines how two path dependencies, transition and expected fine, may be contributing. Herein, these path dependencies are explored to consider whether they are legitimate, how they might affect a farmer’s planting decisions and their possible effects on soybean seed markets. Our simulation models consider the number of periods for patented seed market share to converge from zero to 85%. Results indicate that the path dependencies create pockets of significant convergence influence over various alternative price ranges, i.e. the dependencies can accelerate or create a convergence that would not have existed without them. When a relatively large expected fine path or a strong version of the transition dependency is considered, the pocket includes reasonable price premiums for conventional and organic seed.

Suggested Citation

  • Jenson Robert A. & McIntosh Christopher Richard, 2016. "Modeling US Farmer Soybean Seed Choice with Path Dependencies: Inevitable Patented Seed Market Dominance?," Journal of Agricultural & Food Industrial Organization, De Gruyter, vol. 14(1), pages 69-79, May.
    • Handle: RePEc:bpj:bjafio:v:14:y:2016:i:1:p:69-79:n:2
    DOI: 10.1515/jafio-2013-0021
    as

    Download full text from publisher

    File URL: https://doi.org/10.1515/jafio-2013-0021
    Download Restriction: For access to full text, subscription to the journal or payment for the individual article is required.
    File URL: https://libkey.io/10.1515/jafio-2013-0021?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
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    References listed on IDEAS

    as
    1. Sergio H. Lence & Sanjeev Agarwal, 2003. "Assessing the Feasibility of Processing and Marketing Niche Soy Oil," Center for Agricultural and Rural Development (CARD) Publications 03-mrp6, Center for Agricultural and Rural Development (CARD) at Iowa State University.
    Full references (including those not matched with items on IDEAS)

    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.

      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:bpj:bjafio:v:14:y:2016:i:1:p:69-79:n:2. 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: Peter Golla (email available below). General contact details of provider: https://www.degruyter.com .

      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.