Agricultural policy modelling under imperfect competition
Claudio Soregaroli (),
Paolo Sckokai () and
Journal of Policy Modeling, 2011, vol. 33, issue 2, 195-212
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)
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (10) Track citations by RSS feed
Downloads: (external link)
Full text for ScienceDirect subscribers only
This item may be available elsewhere in EconPapers: Search for items with the same title.
Export reference: BibTeX
RIS (EndNote, ProCite, RefMan)
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
Bibliographic data for series maintained by Haili He ().