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Examining Market Power in the Finnish Dairy Chain

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  • Valtiala, Juho P.
  • Rezitis, Anthony N.

Abstract

This study examined whether processors and retailers have market power in the Finnish dairy chain. Both the dairy processing and the retail sector are highly concentrated in Finland, and market imperfections in the chain are not well known. The results indicate that the retailers have market power over the consumers in the retail market but the processing market is competitive. According to the results, the retailers employ full mark-up in the retail market. It is emphasised that market power in the Finnish dairy chain should be further studied with different approaches to gain more evidence for market power.

Suggested Citation

  • Valtiala, Juho P. & Rezitis, Anthony N., 2017. "Examining Market Power in the Finnish Dairy Chain," 2017 International Congress, August 28-September 1, 2017, Parma, Italy 261419, European Association of Agricultural Economists.
    • Handle: RePEc:ags:eaae17:261419
    DOI: 10.22004/ag.econ.261419
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    References listed on IDEAS

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    1. Paolo Sckokai & Claudio Soregaroli & Daniele Moro, 2013. "Estimating Market Power by Retailers in a Dynamic Framework: the Italian PDO Cheese Market," Journal of Agricultural Economics, Wiley Blackwell, vol. 64(1), pages 33-53, February.
    2. Schroeter, John R. & Azzam, Azzeddine M. & Zhang, Mingxia, 2000. "Measuring Market Power in Bilateral Oligopoly: The Wholesale Market for Beef," Staff General Research Papers Archive 1777, Iowa State University, Department of Economics.
    3. Metin Cakir & Joseph V. Balagtas, 2012. "Estimating Market Power of U.S. Dairy Cooperatives in the Fluid Milk Market," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 94(3), pages 647-658.
    4. Scalco, Paulo R. & Braga, Marcelo J., 2015. "Identification of Market Power in Bilateral Oligopoly: The Brazilian Wholesale Market of UHT Milk," 2015 Conference, August 9-14, 2015, Milan, Italy 212278, International Association of Agricultural Economists.
    5. Perekhozhuk, Oleksandr & Grings, Michael & Glauben, Thomas, 2009. "Oligopsony Power in the Ukrainian Milk Processing Industry: Evidence from the Regional Markets for Raw Milk," MPRA Paper 16991, University Library of Munich, Germany.
    6. John R. Schroeter & Azzeddine M. Azzam, & Mingxia Zhang, 2000. "Measuring Market Power in Bilateral Oligopoly: The Wholesale Market for Beef," Southern Economic Journal, John Wiley & Sons, vol. 66(3), pages 526-547, January.
    7. Sckokai, Paolo & Soregaroli, Claudio & Moro, Daniele, 2012. "Estimating Market Power By Retailers In A Dynamic Framework: The Case Of The Italian Pdo Cheese Market," 2012 Conference, August 18-24, 2012, Foz do Iguacu, Brazil 126703, International Association of Agricultural Economists.
    8. Andrews, Donald W. K. & Lu, Biao, 2001. "Consistent model and moment selection procedures for GMM estimation with application to dynamic panel data models," Journal of Econometrics, Elsevier, vol. 101(1), pages 123-164, March.
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