Market delimination on the example of the sugar sector

Michał Pietrzak and Marcin Mucha

No 244575, Problems of Agricultural Economics / Zagadnienia Ekonomiki Rolnej from Institute of Agricultural and Food Economics - National Research Institute (IAFE-NRI)

Abstract: This paper is aimed at: (1) discussion of the geographical market delimitation, considering the decision-making methods used by antitrust authorities; and (2) verification of the geographical range of the sugar market using the Elzinga-Hogarty test. This market is defined as domestic market in the decisions of the European Commission and Polish antitrust authorities. The comprehensive research (covering ca. 80 countries of the world supplying ca. 98% of the global sugar supply) showed that – in the light of the Elzinga-Hogarty method – most of the countries fail to meet the criteria of the LOFI/LIFO tests, which means that the geographical range of the sugar market is usually transnational. The findings comply – in the gen- eral dimension – with the mainstream of the criticism of the European antitrust authorities for too narrow definition of the markets and, in the detailed dimension – with the opinion of the representatives of the industry and scientists dealing with the sugar sector concerning the transnational range of the sugar market. This controversy points to the need for further research and discussions on the geographical market delimitation. Moreover, the issue should be covered with reference to other agri-food markets – using both the methodology developed with antitrust proceedings in mind, as well as the concepts stemming from strategic management.

Keywords: Agricultural and Food Policy; International Development; Research Methods/ Statistical Methods (search for similar items in EconPapers)
Pages: 22
Date: 2015
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Persistent link: https://EconPapers.repec.org/RePEc:ags:iafepa:244575

DOI: 10.22004/ag.econ.244575

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