MARKET CONDUCT UNDER GOVERNMENT PRICE INTERVENTION IN THE U.S. DAIRY INDUSTRY

The degree of market power exercised by fluid and manufactured processors in the U.S. dairy industry is estimated. Appelbaum's quantity-setting conjectural variation approach is cast into a switching regime framework to account for the two market regimes created by the existence of the dairy price support program: (a) government supported regime (market price is at the support price) and (b) market equilibrium regime (market price is above the support price). The model is also used to test whether government price intervention has a pro-competitive to anti-competitive influence on market conduct.


Issue Date:
1995-12
Publication Type:
Journal Article
DOI and Other Identifiers:
Record Identifier:
https://ageconsearch.umn.edu/record/30772
PURL Identifier:
http://purl.umn.edu/30772
Published in:
Journal of Agricultural and Resource Economics, 20, 2
Page range:
301-315
Total Pages:
15




 Record created 2017-04-01, last modified 2019-08-26

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