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Export Market Pricing Decisions and Market Power in World Grain Markets: A Duopoly Model for Soybeans

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  • Zhang, Qiang
  • Reed, Michael R.
  • Saghaian, Sayed H.

Abstract

This study investigates export pricing decisions and market power for soybeans using a duopoly model. The results from the pricing-to-market approach and residual demand elasticity approach show the soybean export markets are competitive. The continuous increase in world demand results in a positive relationship between export prices and volumes. Replaced with new version of paper 2/13/07.

Suggested Citation

  • Zhang, Qiang & Reed, Michael R. & Saghaian, Sayed H., 2007. "Export Market Pricing Decisions and Market Power in World Grain Markets: A Duopoly Model for Soybeans," 2007 Annual Meeting, February 4-7, 2007, Mobile, Alabama 34949, Southern Agricultural Economics Association.
    • Handle: RePEc:ags:saeasm:34949
    DOI: 10.22004/ag.econ.34949
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    References listed on IDEAS

    as
    1. Carter, Colin A. & MacLaren, Donald & Yilmaz, Alper, 1999. "How Competitive Is The World Wheat Market?," Working Papers 11973, University of California, Davis, Department of Agricultural and Resource Economics.
    2. Francisco Requena Silvente, 2005. "Price Discrimination and Market Power in Export Markets: The Case of the Ceramic Tile Industry," Journal of Applied Economics, Taylor & Francis Journals, vol. 8(2), pages 347-370, November.
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    4. Saghaian, Sayed H. & Reed, Michael R., 2004. "Integrating Marginal Cost into Pricing-to-market Models for U.S. Agricultural Products," CAFRI: Current Agriculture, Food and Resource Issues, Canadian Agricultural Economics Society, issue 5, pages 1-17, July.
    5. Daniel H. Pick & Colin A. Carter, 1994. "Pricing to Market with Transactions Denominated in a Common Currency," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 76(1), pages 55-60.
    6. Goldberg, Pinelopi Koujianou & Knetter, Michael M., 1999. "Measuring the intensity of competition in export markets," Journal of International Economics, Elsevier, vol. 47(1), pages 27-60, February.
    7. Glauben Thomas & Loy Jens-Peter, 2002. "Pricing-to-Market versus Residual Demand Elasticity Analysis of Imperfect Competition in Food Exports: Evidence from Germany," Journal of Agricultural & Food Industrial Organization, De Gruyter, vol. 1(1), pages 1-21, October.
    8. Philip C. Abbott & Paul M. Patterson & Alejandro Reca, 1993. "Imperfect Competition and Exchange Rate Pass-Through in the Food Processing Sector," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 75(5), pages 1226-1230.
    9. Baker, Jonathan B. & Bresnahan, Timothy F., 1988. "Estimating the residual demand curve facing a single firm," International Journal of Industrial Organization, Elsevier, vol. 6(3), pages 283-300.
    10. Reed, Michael R. & Saghaian, Sayed H., 2004. "Measuring the Intensity of Competition in the Japanese Beef Market," Journal of Agricultural and Applied Economics, Southern Agricultural Economics Association, vol. 36(1), pages 1-9, April.
    11. Saghaian, Sayed H. & Reed, Michael R., 2001. "Exchange Rate Changes And Pricing-To-Market Behavior Of U.S. Meat Exporters," 2001 Annual meeting, August 5-8, Chicago, IL 20710, American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association).
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