Interaction between buyer power in agricultural procurement and seller power in food retailing, and optimal allocation of anti-trust efforts

Tian Xia and Brian Sancewich
Additional contact information
Brian Sancewich: Kansas State University

Agricultural and Food Economics, 2018, vol. 6, issue 1, 1-19

Abstract: Abstract In order to take appropriate and effective actions against anticompetitive behaviors in the agricultural sector, it is essential to understand the interaction between buyer power in agricultural procurement and seller power in food retailing and the optimal allocation of anti-trust efforts between markets to maximize welfare. This paper finds that, even if the policy objective is to maximize farmer welfare, anti-trust efforts may need to put to both farm and retail markets. More importantly, the optimal allocations of anti-trust efforts are the same for three different policy objectives: to maximize farmer welfare, to maximize consumer welfare, and to maximize social welfare. The steepness of farm supply and consumer demand curve, along with processors’ buyer power and retailers’ seller power, can affect the optimal allocation of anti-trust efforts. Some guidelines and formula are suggested for designing optimal allocation of anti-trust efforts between farm and retail markets.

Date: 2018
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (1)

Downloads: (external link)
http://link.springer.com/10.1186/s40100-018-0110-8 Abstract (text/html)

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:spr:agfoec:v:6:y:2018:i:1:d:10.1186_s40100-018-0110-8

Ordering information: This journal article can be ordered from
http://www.springer. ... nomics/journal/40100

DOI: 10.1186/s40100-018-0110-8

Access Statistics for this article

Agricultural and Food Economics is currently edited by Alessandro Banterle, Liesbeth Dries, Andrea Marchini and Carlo Russo

More articles in Agricultural and Food Economics from Springer, Italian Society of Agricultural Economics (SIDEA) Contact information at EDIRC.
Bibliographic data for series maintained by Sonal Shukla () and Springer Nature Abstracting and Indexing ().