Testing Market Power and Welfare Effects in the US Catfish Industry

Nguyen Giap V. (), Jolly Curtis M. () and Nguyen Thong T. ()
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Nguyen Giap V.: University of Economics Ho Chi Minh City, School of Government, 59C Nguyen Dinh Chieu Str., District 3 Ho Chi Minh city, Viet Nam
Jolly Curtis M.: Department of Agricultural Economics and Rural Sociology, Auburn University, Auburn, Alabama, USA
Nguyen Thong T.: Syntesa Associates & Partners, Copenhagen, Denmark

Journal of Agricultural & Food Industrial Organization, 2022, vol. 20, issue 2, 11

Abstract: An empirical specification of the conjectural variations model, which conforms to microeconomic theory, is estimated for the US catfish industry. We find the existence of market power exerted by US catfish processors. Processors force the price paid to catfish growers down by 52.88 cent per pound of live catfish, which costs US catfish growers about $300 million a year. US catfish growers can deter the negative effects of processors’ market power by increasing their farm supply flexibility. Further studies are needed to address the dynamics and competitive game strategies in the US catfish industry.

Keywords: market power; welfare analysis; US catfish (search for similar items in EconPapers)
JEL-codes: D43 L11 L13 (search for similar items in EconPapers)
Date: 2022
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DOI: 10.1515/jafio-2019-0025

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