On Storage Behavior Under Imperfect Competition

This paper investigates the economic implications of storage behavior under imperfect competition. It evaluates the economic dynamics implied by a storage firm under alternative market structures. This includes perfect competition as well as imperfect competition under Cournot behavior. The conceptual analysis is used to specify and estimate a model of storage behavior, with an econometric application to the US American cheese market. The empirical results provide statistical evidence of non-competitive storage behavior. They show that the exercise of market power contributes to reduced stock fluctuations and increased price instability in the US cheese market.


Issue Date:
2006-10
Publication Type:
Working or Discussion Paper
PURL Identifier:
http://purl.umn.edu/201527
Total Pages:
29
Series Statement:
FSWP
2006-04




 Record created 2017-04-01, last modified 2017-08-28

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