IDEAS home Printed from https://ideas.repec.org/a/oup/ajagec/v73y1991i1p133-141..html
   My bibliography  Save this article

The Competitive Structure of U.S. Agricultural Exports

Author

Listed:
  • Daniel H. Pick
  • Timothy A. Park

Abstract

The competitive structure of U.S. agricultural exports is examined using a model of exporter behavior based on pricing decisions across destination markets. Market power is revealed in the adjustment patterns of export prices in response to exchange rate movements. The results reject the hypothesis that the export pricing decisions by U.S. firms are consistent with price discrimination across destination markets for cotton, corn, and soybeans. The strongest evidence against the competitive market structure is obtained for international trade in wheat, where results indicate that the two largest importers (Soviet Union and PRC) may exert market power to obtain lower prices.

Suggested Citation

  • Daniel H. Pick & Timothy A. Park, 1991. "The Competitive Structure of U.S. Agricultural Exports," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 73(1), pages 133-141.
    • Handle: RePEc:oup:ajagec:v:73:y:1991:i:1:p:133-141.
    as

    Download full text from publisher

    File URL: http://hdl.handle.net/10.2307/1242889
    Download Restriction: Access to full text is restricted to subscribers.
    ---><---

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

    Other versions of this item:

    References listed on IDEAS

    as
    1. Charles D. Kolstad & Anthony E. Burris, 1986. "Imperfectly Competitive Equilibria in International Commodity Markets," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 68(1), pages 27-36.
    2. Sven W. Arndt & J. David Richardson, 1987. "Real-Financial Linkages Among Open Economies," NBER Working Papers 2230, National Bureau of Economic Research, Inc.
    3. Wilson, William W., 1989. "Differentiation And Implicit Prices In Export Wheat Markets," Western Journal of Agricultural Economics, Western Agricultural Economics Association, vol. 14(1), pages 1-11, July.
    4. Ann Hillberg Seitzinger & Philip L. Paarlberg, 1990. "A Simulation Model of the U.S. Export Enhancement Program for Wheat," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 72(1), pages 95-103.
    5. Dornbusch, Rudiger, 1987. "Exchange Rates and Prices," American Economic Review, American Economic Association, vol. 77(1), pages 93-106, March.
    6. Larry S. Karp & Alex F. McCalla, 1983. "Dynamic Games and International Trade: An Application to the World Corn Market," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 65(4), pages 641-650.
    7. James K. Binkley & Bruce Harrer, 1981. "Major Determinants of Ocean Freight Rates for Grains: An Econometric Analysis," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 63(1), pages 47-57.
    8. Alexander H. Sarris & John Freebairn, 1983. "Endogenous Price Policies and International Wheat Prices," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 65(2), pages 214-224.
    9. Colin Carter & Andrew Schmitz, 1979. "Import Tariffs and Price Formation in the World Wheat Market," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 61(3), pages 517-522.
    10. Feinberg, Robert M, 1986. "The Interaction of Foreign Exchange and Market Power Effects on German Domestic Prices," Journal of Industrial Economics, Wiley Blackwell, vol. 35(1), pages 61-70, September.
    11. Alex F. McCalla, 1966. "A Duopoly Model of World Wheat Pricing," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 48(3_Part_I), pages 711-727.
    12. Chris M. Alaouze & A. S. Watson & N. H. Sturgess, 1978. "Oligopoly Pricing in the World Wheat Market," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 60(2), pages 173-185.
    13. Philip L. Paarlberg & Philip C. Abbott, 1986. "Oligopolistic Behavior by Public Agencies in International Trade: The World Wheat Market," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 68(3), pages 528-542.
    14. Mitchell, Donald O & Duncan, Ronald C, 1987. "Market Behavior of Grains Exporters," The World Bank Research Observer, World Bank, vol. 2(1), pages 3-21, January.
    15. Michele M. Veeman, 1987. "Hedonic Price Functions for Wheat in the World Market: Implications for Canadian Wheat Export Strategy," Canadian Journal of Agricultural Economics/Revue canadienne d'agroeconomie, Canadian Agricultural Economics Society/Societe canadienne d'agroeconomie, vol. 35(3), pages 535-552, November.
    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.
    1. D. MacLaren, 1991. "Agricultural Trade Policy Analysis And International Trade Theory: A Review Of Recent Developments," Journal of Agricultural Economics, Wiley Blackwell, vol. 42(3), pages 250-297, September.
    2. Vanzetti, David & Kennedy, John O.S., 1989. "Optimal Retaliation in International Commodity Markets," Review of Marketing and Agricultural Economics, Australian Agricultural and Resource Economics Society, vol. 57(01-02-03), pages 1-25, December.
    3. Patterson, Paul M & Abbott, Philip C, 1994. "Further Evidence on Competition in the US Grain Export Trade," Journal of Industrial Economics, Wiley Blackwell, vol. 42(4), pages 429-437, December.
    4. Van der Sluis, Evert, 1988. "A nonlinear multicountry multicommodity spatial equilibrium model with an application," ISU General Staff Papers 1988010108000018153, Iowa State University, Department of Economics.
    5. Lavoie, Nathalie, 2001. "Price Discrimination In The Context Of Vertical Differentiation: A Modeling Approach For Wheat Exports," 2001 Annual meeting, August 5-8, Chicago, IL 20603, American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association).
    6. Jeon, Jong-Pyeong, 1989. "The impacts of policy alternatives and foreign demand fluctuations on the US rice market," ISU General Staff Papers 1989010108000010204, Iowa State University, Department of Economics.
    7. Saghaian, Sayed H. & Reed, Michael R., 2001. "Exchange Rate Changes And Pricing-To-Market Behavior Of U.S. Meat Exporters," 2001 Annual meeting, August 5-8, Chicago, IL 20710, American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association).
    8. Chen, Chi-Chung & McCarl, Bruce A. & Chang, Ching-Cheng & Hsu, Shih-Hsun, 2002. "Spatial Equilibrium Modeling With Imperfectly Competitive Markets: An Application To Rice Trade," 2002 Annual meeting, July 28-31, Long Beach, CA 19687, American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association).
    9. Labson, B. Stephen & Rausser, Gordon C., 1992. "Modeling Phased Reduction of Distortionary Policies in the U.S. Wheat Market Under Alternative Macroeconomic Environments," Staff General Research Papers Archive 502, Iowa State University, Department of Economics.
    10. Reimer, Jeffrey J. & Stiegert, Kyle W., 2006. "Evidence on Imperfect Competition and Strategic Trade Theory," Staff Papers 12609, University of Wisconsin-Madison, Department of Agricultural and Applied Economics.
    11. Thursby, Marie C. & Thursby, Jerry G., 1991. "Strategic Trade Theory and Agricultural Markets: An Application to Canadian and U.S. Wheat Exports to Japan," Occasional Papers 233062, Regional Research Project NC-194: Organization and Performance of World Food Systems.
    12. Anania, Giovanni, 2003. "Gains from trade liberalization with imperfectly competitive world markets. A note," Economia Agraria y Recursos Naturales, Spanish Association of Agricultural Economists, vol. 3(06), pages 1-15.
    13. C. S. C. Sekhar, 2010. "Structure of the World Wheat Market: Some Implications for Strategic Trade Policy?," Journal of Quantitative Economics, The Indian Econometric Society, vol. 8(2), pages 142-158.
    14. Jeffrey D. McDonald & Daniel A. Sumner, 2003. "The Influence of Commodity Programs on Acreage Response to Market Price: With an Illustration Concerning Rice Policy in the United States," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 85(4), pages 857-871.
    15. Gardner, George R. & Skully, Davide W., 1986. "The Conduct Of Wheat Marketing In North Africa," Staff Reports 277903, United States Department of Agriculture, Economic Research Service.
    16. Atanu Ghoshray, 2002. "Agricultural Economics Society Prize Essay Asymmetric Price Adjustment and the World Wheat Market," Journal of Agricultural Economics, Wiley Blackwell, vol. 53(2), pages 299-317, July.
    17. Bastos, Paulo & Straume, Odd Rune & Urrego, Jaime A., 2013. "Rain, agriculture, and tariffs," Journal of International Economics, Elsevier, vol. 90(2), pages 364-377.
    18. Lee, Dae-Seob & Kennedy, P. Lynn, 2002. "A Game Theoretic Analysis Of U.S. Rice Export Policy: The Case Of Japan And Korea," 2002 Annual meeting, July 28-31, Long Beach, CA 19686, American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association).
    19. Margherita Scoppola, 1993. "Trade policies and the strategies of multinationals in the international grain market," Agribusiness, John Wiley & Sons, Ltd., vol. 9(3), pages 189-204.
    20. Ghoshray, Atanu, 2006. "Market Delineation and Price Leadership in the World Wheat Market: A Cointegration Analysis," Agricultural and Resource Economics Review, Northeastern Agricultural and Resource Economics Association, vol. 35(2), pages 1-16, October.

    More about this item

    Statistics

    Access and download statistics

    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:oup:ajagec:v:73:y:1991:i:1:p:133-141.. 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: Oxford University Press (email available below). General contact details of provider: https://edirc.repec.org/data/aaeaaea.html .

    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.