ASSESSMENT OF MARKET POWER AND COST EFFICIENCY EFFECTS IN THE U.S. BEEF PACKING INDUSTRY

Inbae Ji and Chanjin Chung

Journal of Rural Development/Nongchon-Gyeongje, 2016, vol. 39, issue Special, December 2016, 24

Abstract: This paper examines the simultaneous impacts of horizontal concentration and vertical integration on oligopoly & oligopsony power and cost efficiency in the U.S. beef packing industry, using both static and time varying empirical industrial organization models. Two separate sources of market power are considered: concentration and the captive supply market. Empirical results show the presence of market power in both beef retail and cattle procurement markets, and that the market power exertion in these markets is positively affected by concentration and captive supply, respectively. The results also show that the market power exertion drastically decreases after the implementation of livestock mandatory price reporting. Finally, our study finds that the market power effect is outweighed by the cost efficiency effect due to the increasing concentration and captive supply.

Keywords: Livestock; Production/Industries (search for similar items in EconPapers)
Date: 2016
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (1)

Downloads: (external link)
https://ageconsearch.umn.edu/record/251928/files/RE-39-5-02_JI.pdf (application/pdf)

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:ags:jordng:251928

DOI: 10.22004/ag.econ.251928

Access Statistics for this article

More articles in Journal of Rural Development/Nongchon-Gyeongje from Korea Rural Economic Institute Contact information at EDIRC.
Bibliographic data for series maintained by AgEcon Search ().