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Concentration, Market Power, And Cost Efficiency In The Corn Seed Industry

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  • Fernandez-Cornejo, Jorge
  • Spielman, David J.

Abstract

The paper presents a model developed to examine the effects of industry concentration on market power and cost efficiency in the seed industry. In addition, the paper presents preliminary measures of the relative strengths of these effects for the case of the U.S. corn seed industry over the past 3 decades. The model uses conjectural elasticities and is estimated using data collected from USDA sources. The empirical results allow us to distinguish between the market power and cost effects of concentration, and to ascertain the tradeoff between the cost efficiency and market power resulting from higher concentration in the corn seed industry.

Suggested Citation

  • Fernandez-Cornejo, Jorge & Spielman, David J., 2002. "Concentration, Market Power, And Cost Efficiency In The Corn Seed Industry," 2002 Annual meeting, July 28-31, Long Beach, CA 19877, American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association).
    • Handle: RePEc:ags:aaea02:19877
    DOI: 10.22004/ag.econ.19877
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    References listed on IDEAS

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    Cited by:

    1. Nolan, Elizabeth & Santos, Paulo, 2009. "Evidence for increasing concentration in plant breeding industries in the United States and the European Union," 2009 Conference (53rd), February 11-13, 2009, Cairns, Australia 48060, Australian Agricultural and Resource Economics Society.
    2. Richard D. Smart & Amer Ait Sidhoum & Johannes Sauer, 2022. "Decomposition of efficiency in the global seed industry: A nonparametric approach," Managerial and Decision Economics, John Wiley & Sons, Ltd., vol. 43(6), pages 2133-2147, September.
    3. Marin A. & Stubrin L.I., 2015. "Innovation in natural resources : New opportunities and new challenges. The case of the Argentinean seed industry," MERIT Working Papers 2015-015, United Nations University - Maastricht Economic and Social Research Institute on Innovation and Technology (MERIT).

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