Norwegian export of farmed salmon − trade costs and market concentration

Frank Asche, Ivar Gaasland, Hans-Martin Straume () and Erling Vårdal ()
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Ivar Gaasland: Department of Economics, BI Norwegian Business School
Hans-Martin Straume: * Department of Economics, BI Norwegian Business School

No 11/18, Working Papers in Economics from University of Bergen, Department of Economics

Abstract: While variation in unit value most commonly has been associated with quality in the trade literature, observed differences in prices between markets might also be explained by variation in market concentration and the degree of competition. Using transaction data on Norwegian exports of salmon, we introduce a Herfindahl index as a measure of competition in a standard gravity model. We find that competition typically is weaker in small and distant markets that due to high trade costs are served by relatively few firms. We argue that the anti-competitive impact of trade costs may explain price differentiation between markets even for homogeneous products.

Keywords: Gravity; Trade costs; Market concentration; Salmon (search for similar items in EconPapers)
JEL-codes: C13 F14 Q22 (search for similar items in EconPapers)
Pages: 15 pages
Date: 2018-12-03
New Economics Papers: this item is included in nep-agr, nep-com, nep-ind and nep-int
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Related works:
Journal Article: Norwegian export of farmed salmon − trade costs and market concentration (2020)
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Persistent link: https://EconPapers.repec.org/RePEc:hhs:bergec:2018_011

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