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Testing for Oligopsony Power in the US Green Skin Avocado Market

  • Edward Evans EMAIL logo and Fredy H. Ballen
Published/Copyright: March 26, 2016
Journal of Agricultural & Food Industrial Organization
From the journal Journal of Agricultural & Food Industrial Organization Volume 14 Issue 1

Abstract

The United States is the main destination for Dominican Republic (DR) green skin avocado exports accounting for over 70 % of the total DR green skin avocado exports from 2004 to 2013. Given the US dominant position in the US-DR green skin avocado trade, the United States may have an incentive to deviate from the competitive markets model, and behave as an oligopsonist. The present study seeks to assess potential oligopsonistic behavior in the US green skin avocado import market. A residual supply model was specified and estimated. Findings indicate that despite its dominant position in the world avocado trade, there is no empirical evidence that indicates that the United States exercises market power over DR exports of green skin avocados.

Keywords: green skin avocados; oligopoly; industrial organization; residual supply

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Published Online: 2016-3-26
Published in Print: 2016-1-1

©2016 by De Gruyter

Articles in the same Issue

  1. Frontmatter
  3. Non-Tariff Measures When Alternative Regulatory Tools Can Be Chosen
  4. Mergers and Acquisitions (M&As), Market Structure and Inventive Activity in the Agricultural Biotechnology Industry
  5. Measuring Bilateral Market Power in International Markets of Vertically Differentiated Agricultural Commodities
  6. Testing for Oligopsony Power in the US Green Skin Avocado Market
  7. Innovation in the Seed Market: The Role of IPRs and Commercialization Rules
  8. Modeling US Farmer Soybean Seed Choice with Path Dependencies: Inevitable Patented Seed Market Dominance?
  9. Partial Adherence to Voluntary Quality Standards for Experience Goods
  10. Investigating the Price Transmission Mechanisms of Greek Fresh Potatoes, Tomatoes and Cucumbers Markets
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https://doi.org/10.1515/jafio-2015-0014
Keywords for this article
green skin avocados; oligopoly; industrial organization; residual supply

Articles in the same Issue

  1. Frontmatter
  3. Non-Tariff Measures When Alternative Regulatory Tools Can Be Chosen
  4. Mergers and Acquisitions (M&As), Market Structure and Inventive Activity in the Agricultural Biotechnology Industry
  5. Measuring Bilateral Market Power in International Markets of Vertically Differentiated Agricultural Commodities
  6. Testing for Oligopsony Power in the US Green Skin Avocado Market
  7. Innovation in the Seed Market: The Role of IPRs and Commercialization Rules
  8. Modeling US Farmer Soybean Seed Choice with Path Dependencies: Inevitable Patented Seed Market Dominance?
  9. Partial Adherence to Voluntary Quality Standards for Experience Goods
  10. Investigating the Price Transmission Mechanisms of Greek Fresh Potatoes, Tomatoes and Cucumbers Markets
  11. Channel Concentration and Retail Prices: Evidence from the Traditional Cheese Market of Cyprus
  12. Price Dependence between Different Beef Cuts and Quality Grades: A Copula Approach at the Retail Level for the U.S. Beef Industry
  13. Factors Associated with Alcoholic Beverages Consumption in Russia: A Discrete Choice Model
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