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Implications of Increased Regional Concentration and Oligopsonistic Coordination in the Beef Packing Industry

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  • Azzam, Azzeddine M.
  • Schroeter, John R.

Abstract

This article proposes an oligopsony pricing model for projecting the effects of increased concentration or oligopsonistic coordination in beef packing using simulation methods. The model combines an explicit behavioral theory of packing firms with an attempt to respect the regional scope of cattle procurement markets. Our results indicate less danger of falling cattle prices, as a result of increased packer concentration or coordination, than do results from conventional econometric studies.

Suggested Citation

  • Azzam, Azzeddine M. & Schroeter, John R., 1991. "Implications of Increased Regional Concentration and Oligopsonistic Coordination in the Beef Packing Industry," ISU General Staff Papers 199101010800001084, Iowa State University, Department of Economics.
    • Handle: RePEc:isu:genstf:199101010800001084
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    References listed on IDEAS

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    1. A. M. Azzam & E. Pagoulatos, 1990. "Testing Oligopolistic And Oligopsonistic Behaviour: An Application To The Us Meat‐Packing Industry," Journal of Agricultural Economics, Wiley Blackwell, vol. 41(3), pages 362-370, September.
    2. Quail, Gwen & Marion, Bruce & Geithman, Frederick & Marquardt, Jeffrey, 1986. "The Impact of Packer Buyer Concentration on Live Cattle Prices," Working Papers 204089, University of Wisconsin-Madison, Department of Agricultural and Applied Economics, Food System Research Group.
    3. repec:bla:econom:v:49:y:1982:i:195:p:277-87 is not listed on IDEAS
    4. Schroeter, John R, 1988. "Estimating the Degree of Market Power in the Beef Packing Industry," The Review of Economics and Statistics, MIT Press, vol. 70(1), pages 158-162, February.
    5. Geroski, Paul A, 1988. "In Pursuit of Monopoly Power: Recent Quantitative Work in Industrial Economics," Journal of Applied Econometrics, John Wiley & Sons, Ltd., vol. 3(2), pages 107-123, April.
    6. Johnson, D. Gale & Connor, John M. & Josling, Timothy E. & Schmitz, Andrew & Schuh, G. Edward, 1989. "Concentration Issues In The U.S. Beef Subsector," Working Papers 115907, Regional Research Project NE-165 Private Strategies, Public Policies, and Food System Performance.
    7. Dickson, V. A. & Yu, Weiqiu, 1989. "Welfare losses in Canadian manufacturing under alternative oligopoly regimes," International Journal of Industrial Organization, Elsevier, vol. 7(2), pages 257-267, June.
    8. John R. Schroeter, 1990. "Measuring Market Power in Food-Processing Industries: Discussion," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 72(5), pages 1227-1229.
    9. Schroeder, Ted C. & Goodwin, Barry K., 1990. "Regional Fed Cattle Price Dynamics," Western Journal of Agricultural Economics, Western Agricultural Economics Association, vol. 15(1), pages 1-12, July.
    10. Schroeter, John R. & Azzam, Azzeddine M., 1990. "Measuring Market Power in Multi-Product Oligopolies: The U.S. Meat Industry," Staff General Research Papers Archive 11112, Iowa State University, Department of Economics.
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