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Imperfect Competition in a Vertical Market Network: The Case of Rubber in Thailand

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  • Laurence D. Stifel

Abstract

The efficiency of the sheet rubber marketing system in Thailand is analyzed in the framework of the structure-conduct-performance model from the field of industrial organization. Market performance is evaluated by the degree of monopsony profits and progressiveness. Examination of the multiple relationships at the three principal levels of the vertical network indicates that the system does not fit pure models of microeconomic theory. Comprehensive analysis leads to different conclusions than the more traditional, partial analysis. Diagnosing the structural and behavioral determinants of performance also assists in identifying policy measures to improve marketing efficiency.

Suggested Citation

  • Laurence D. Stifel, 1975. "Imperfect Competition in a Vertical Market Network: The Case of Rubber in Thailand," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 57(4), pages 631-640.
    • Handle: RePEc:oup:ajagec:v:57:y:1975:i:4:p:631-640.
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    File URL: http://hdl.handle.net/10.2307/1238881
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    Cited by:

    1. Min, Shi & Wang, Xiaobing & Liu, Min & Jikun, Huang, 2018. "The Asymmetric Response of Farmers to the Expected Change of Rubber Price: the Roles of Sunk Cost and Path Dependency," 2018 Annual Meeting, August 5-7, Washington, D.C. 274122, Agricultural and Applied Economics Association.
    2. Riggins, Steven K., 1978. "The Pricing Efficiency Of Corn In A Minor Surplus Production Area," Southern Journal of Agricultural Economics, Southern Agricultural Economics Association, vol. 10(2), pages 1-5, December.

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