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Competition and Tying in Agrichemical and Seed Markets

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  • David A. Hennessy
  • Dermot J. Hayes

Abstract

Genetic engineering technologies that better align crop seeds with field crop product demands and with other crop inputs are rapidly entering commercial markets. Central to the success of these new technologies are corporate strategies on product market segmentation and input interactions. Input suppliers possessed of technical advantages may seek to exploit their positions through marketing restrictions such as product tying and bundling. We interpret the economic literature on vertical restraints and use these existing results to understand the motivation and behavior of some of the participants in the evolving glyphosate and Roundup-ready soybean seed markets.

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  • David A. Hennessy & Dermot J. Hayes, 2000. "Competition and Tying in Agrichemical and Seed Markets," Review of Agricultural Economics, Agricultural and Applied Economics Association, vol. 22(2), pages 389-406.
    • Handle: RePEc:oup:revage:v:22:y:2000:i:2:p:389-406.
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    File URL: http://hdl.handle.net/10.1111/1058-7195.00029
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    Cited by:

    1. Rude, James & Fulton, Murray E., 2002. "Concentration And Market Power In Canadian Agribusiness," Proceedings of the 7th Agricultural and Food Policy Systems Information Workshop, 2001: Structural Change as a Source of Trade Disputes Under NAFTA 16873, Farm Foundation, Agricultural and Food Policy Systems Information Workshops.
    2. Steve McCorriston, 2002. "Why should imperfect competition matter to agricultural economists?," European Review of Agricultural Economics, Oxford University Press and the European Agricultural and Applied Economics Publications Foundation, vol. 29(3), pages 349-371, July.
    3. MacDonald, James M., 2002. "Agribusiness Concentration, Competition And Nafta," Proceedings of the 7th Agricultural and Food Policy Systems Information Workshop, 2001: Structural Change as a Source of Trade Disputes Under NAFTA 16883, Farm Foundation, Agricultural and Food Policy Systems Information Workshops.

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