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Wheat Cartelization and Domestic Markets

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  • Robert G. Chambers
  • Michael W. Woolverton

Abstract

The effects of cartelization in the international wheat market are analyzed. Particular attention is given to the relationship between the level of cartel profits and the price farmers receive for their wheat. Sufficient conditions are established for a rise in cartel profits to be associated with a rise in the farmgate price of wheat. The potential stability of a cartel formed by the major trading companies also is investigated and a means of preventing cheating is introduced and discussed.

Suggested Citation

  • Robert G. Chambers & Michael W. Woolverton, 1980. "Wheat Cartelization and Domestic Markets," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 62(4), pages 629-638.
    • Handle: RePEc:oup:ajagec:v:62:y:1980:i:4:p:629-638.
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    File URL: http://hdl.handle.net/10.2307/1239760
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    Cited by:

    1. Cano Lamy, Victoria, 1989. "Evaluating the Impact of Price Incentives on Adoption of Technology and Production Patterns in the Ontario Wheat Industry," Working Papers 244050, Agriculture and Agri-Food Canada.
    2. Chambers, Robert G. & Paarlberg, Philip L., 1989. "Are More Exports Always Better?: Comparing Cash and In-Kind Export Subsidies," Working Papers 197606, University of Maryland, Department of Agricultural and Resource Economics.

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