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Market Structure for Farmed Salmon

Author

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  • Don J. DeVoretz
  • Kjell G. Salvanes

Abstract

Farmed salmon represents 20% of the total volume of the world's salmon supply. Norwegian salmon farmers produce more than 50% of the world's farmed salmon. Rapid expansion of this industry raises important issues about market model specification. We specify and test models with varying degrees of market power, including third-degree price discrimination, using Norwegian export data from 1983 to 1988. Results indicate that Norwegian exporters have limited ability to engage in regional price discrimination, although they may have discriminated after the third quarter of 1987. Seasonal price discrimination, however, may have taken place because demand is more inelastic in periods when fresh wild-caught salmon are unavailable.

Suggested Citation

  • Don J. DeVoretz & Kjell G. Salvanes, 1993. "Market Structure for Farmed Salmon," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 75(1), pages 227-233.
    • Handle: RePEc:oup:ajagec:v:75:y:1993:i:1:p:227-233.
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    File URL: http://hdl.handle.net/10.2307/1242971
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    Cited by:

    1. Winfree, Jason A. & McCluskey, Jill J. & Mittelhammer, Ronald C. & Gutman, Paula, 2004. "Seasonal Oligopoly Power In The D'Anjou Pear Industry," Journal of Food Distribution Research, Food Distribution Research Society, vol. 35(2), pages 1-10, July.
    2. Frank Asche & Helge Bremnes & Cathy R. Wessells, 1999. "Product Aggregation, Market Integration, and Relationships between Prices: An Application to World Salmon Markets," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 81(3), pages 568-581.
    3. Frank Asche, 2001. "Testing the effect of an anti-dumping duty: The US salmon market," Empirical Economics, Springer, vol. 26(2), pages 343-355.
    4. Steen, Frode & Salvanes, Kjell G., 1999. "Testing for market power using a dynamic oligopoly model," International Journal of Industrial Organization, Elsevier, vol. 17(2), pages 147-177, February.
    5. Wakamatsu, Hiroki & Miyata, Tsutomu, 2014. "Do Radioactive Spills from the Fukushima Disaster Have any Influence on Seafood Market in Japan?," MPRA Paper 55667, University Library of Munich, Germany, revised 18 Jun 2014.
    6. Petersen, Elizabeth H. & Muldoon, Geoffrey & Johnston, Bill, 2005. "Finding Nemo: Estimating Import Demand For Live Reef Food Fish," 2005 Conference (49th), February 9-11, 2005, Coff's Harbour, Australia 137941, Australian Agricultural and Resource Economics Society.
    7. Eivind Hestvik Braekkan & Sverre Braathen Thyholdt, 2014. "The Bumpy Road of Demand Growth--An Application to Atlantic Salmon," Marine Resource Economics, University of Chicago Press, vol. 29(4), pages 339-350.
    8. Hiroki Wakamatsu & Tsutomu Miyata, 2016. "Do Radioactive Spills from the Fukushima Disaster Have Any Influence on the Japanese Seafood Market?," Marine Resource Economics, University of Chicago Press, vol. 31(1), pages 27-45.
    9. Kehar Singh & Madan M. Dey & Prasanna Surathkal, 2014. "Seasonal and Spatial Variations in Demand for and Elasticities of Fish Products in the United States: An Analysis Based on Market-Level Scanner Data," Canadian Journal of Agricultural Economics/Revue canadienne d'agroeconomie, Canadian Agricultural Economics Society/Societe canadienne d'agroeconomie, vol. 62(3), pages 343-363, September.
    10. Nguyen, Ly & Schmitz, Andrew, 2022. "The Welfare Impacts of Covid-19 on U.S. Salmon Sector," 2022 Annual Meeting, July 31-August 2, Anaheim, California 322351, Agricultural and Applied Economics Association.
    11. Carolyn Fischer & Atle G. Guttormsen & Martin D. Smith, 2017. "Disease Risk and Market Structure in Salmon Aquaculture," Water Economics and Policy (WEP), World Scientific Publishing Co. Pte. Ltd., vol. 3(02), pages 1-29, April.
    12. Svetlana B. Avdasheva & Dina V. Tsytsulina, 2014. "The Effects Of Competition Policy: Merger Approval, Entry Barrier Removal, Antitrust Enforcement Compared," HSE Working papers WP BRP 34/FE/2014, National Research University Higher School of Economics.
    13. Avdasheva, Svetlana & Tsytsulina, Dina, 2015. "The effects of M&As in highly concentrated domestic vis-à-vis export markets: By the example of Russian metal industries," Research in International Business and Finance, Elsevier, vol. 34(C), pages 368-382.

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