 Agricultural policy modelling under imperfect competitionClaudio Soregaroli (), Paolo Sckokai and Daniele Moro Journal of Policy Modeling, 2011, vol. 33, issue 2, 195-212 Abstract: This study evaluates the role of imperfect competition in determining the agri-food policies impact assessment outcomes. In most impact studies, the supply chain between agricultural production and final consumption is modelled in a perfectly competitive framework. However, there is a growing attention of stakeholders for the presence of imperfectly competitive markets, with the retail sector often being under investigation. This issue is empirically analysed with an application to the dairy industry. First, the degree of market power is estimated using a multi-output demand and price transmission equation system. Then, this model is used for policy simulation with the perfect competition outcome taken as a benchmark to evaluate the impact of imperfect competition. Results show a significant degree of market power in the dairy industry with implications on the projected policy scenarios. Moreover, the imperfect competition model alters the price transmission mechanisms, generating more flexible price trends. Keywords: Policy; evaluation; Imperfect; competition; Common; agricultural; policy; Dairy; sector (search for similar items in EconPapers) Downloads: (external link) Related works: Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text Persistent link: https://EconPapers.repec.org/RePEc:eee:jpolmo:v:33:y:2011:i:2:p:195-212 Access Statistics for this article Journal of Policy Modeling is currently edited by A. M. Costa More articles in Journal of Policy Modeling from Elsevier |
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