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Effects of Market-Share and Antimerger Policies on the Fluid Milk-Processing Industry

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  • Richard L. Kilmer
  • David E. Hahn

Abstract

The effects of merger restriction policies and market-share restriction policies on the structure of the Ohio fluid milk-processing industry are compared and contrasted within an intertemporal production distribution model. Individual firm size constraints are predicated on the transition probabilities of a Markov Chain. Merger restrictions are found to be less disruptive of industry structure. However, market share is a more effective tool for controlling concentration. The appropriate combination of merger-market share policies must be based on an analysis of market performance on a market-by-market basis.

Suggested Citation

  • Richard L. Kilmer & David E. Hahn, 1978. "Effects of Market-Share and Antimerger Policies on the Fluid Milk-Processing Industry," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 60(3), pages 385-392.
    • Handle: RePEc:oup:ajagec:v:60:y:1978:i:3:p:385-392.
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    File URL: http://hdl.handle.net/10.2307/1239935
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    Cited by:

    1. Kilmer, Richard L. & Armbruster, Walter J., 1984. "Methods For Evaluating Economic Efficiency In Agricultural Marketing," Southern Journal of Agricultural Economics, Southern Agricultural Economics Association, vol. 16(1), pages 1-9, July.
    2. Fuller, Stephen W. & Shanmugham, Chiyyarath V., 1978. "Network Flow Models: Use In Rural Freight Transportation Analysis And A Comparison With Linear Programming," Southern Journal of Agricultural Economics, Southern Agricultural Economics Association, vol. 10(2), pages 1-6, December.

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