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Wheat Cartelization In The Presence Of A Market Intermediary

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  • Carter, Colin
  • Gallini, Nancy

Abstract

This paper examines a von Stackelberg behavior of an intermediary firm in the wheat market. It demonstrates that the intermediary acting as a leader in the market will oppose the formation of a wheat cartel. Although the marketing charge does not change with the introduction of the cartel, volume traded decreases thus decreasing total revenue to the intermediary firm.

Suggested Citation

  • Carter, Colin & Gallini, Nancy, 1979. "Wheat Cartelization In The Presence Of A Market Intermediary," 1979 Annual Meeting, July 29-August 1, Pullman, Washington 278388, American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association).
    • Handle: RePEc:ags:aaea79:278388
    DOI: 10.22004/ag.econ.278388
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    File URL: https://ageconsearch.umn.edu/record/278388/files/aaea-1979-136.pdf
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    References listed on IDEAS

    as
    1. 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.
    2. 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.
    3. 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.
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    Cited by:

    1. Dote, Grace, 1982. "Economic Research Of Interest To Agriculture, 1979-1981," Economic Research of Interest to Agriculture 7291, University of California, Berkeley, Department of Agricultural and Resource Economics.

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    Crop Production/Industries;

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