MARKET POWER AND COST-EFFICIENCY EFFECTS OF THE MARKET CONCENTRATION IN THE U.S. NITROGEN FERTILIZER INDUSTRY

C.S. Kim, Charles B. Hallahan, Harold Taylor and Gerald Schluter ()

No 19674, 2002 Annual meeting, July 28-31, Long Beach, CA from American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association)

Abstract: This article examines the effects of increasing market concentration level in the U.S. nitrogen fertilizer industry. Results indicate that the costs of market power are greater than the benefits of market concentration, in terms of manufacturing cost efficiency. To provide a stable nitrogen fertilizer supply at a relatively low price, it may be necessary to control natural gas price and/or reduce new import barriers from Middle East and former member states of the Soviet Union, where low cost gas is produced as a byproduct.

Keywords: Nitrogen fertilizer; oligopoly; economies of size; market power; cost-efficiency.; Marketing (search for similar items in EconPapers)
Pages: 23
Date: 2002
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Citations: View citations in EconPapers (2)

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Persistent link: https://EconPapers.repec.org/RePEc:ags:aaea02:19674

DOI: 10.22004/ag.econ.19674

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