MEASURING THE DEGREE OF OLIGOPSONY POWER IN THE BEEF PACKING INDUSTRY IN THE ABSENCE OF MARKETING INPUT QUANTITY DATA

Mary K. Muth and Michael Wohlgenant ()

Journal of Agricultural and Resource Economics, 1999, vol. 24, issue 2, 14

Abstract: We develop a model to measure the degree of oligopsony power in the beef packing industry, while accommodating variable proportions technology, that can be estimated with fewer data requirements. In particular, nonspecialized input quantities, which are often not available, are not needed. Through application of the envelope theorem, we show that the relationship between value marginal product and marginal factor cost can be defined over the prices of the nonspecialized inputs rather than their corresponding quantities. When applied to the beef packing industry, we find no evidence of oligopsony power over our 1967-93 sample period.

Keywords: Agribusiness (search for similar items in EconPapers)
Date: 1999
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (43)

Downloads: (external link)
https://ageconsearch.umn.edu/record/30795/files/24020299.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:jlaare:30795

DOI: 10.22004/ag.econ.30795

Access Statistics for this article

More articles in Journal of Agricultural and Resource Economics from Western Agricultural Economics Association Contact information at EDIRC.
Bibliographic data for series maintained by AgEcon Search ().