Testing Market Power and Welfare Effects in the US Catfish Industry

Giap V. Nguyen; Curtis M. Jolly; Thong T. Nguyen

doi:10.1515/jafio-2019-0025

Testing Market Power and Welfare Effects in the US Catfish Industry

Giap V. Nguyen^*, Curtis M. Jolly, Thong T. Nguyen

^*Corresponding author af dette arbejde

Publikation: Bidrag til tidsskrift › Tidsskriftartikel › Forskning › peer review

Abstract

An empirical specification of the conjectural variations model, which conforms to microeconomic theory, is estimated for the US catfish industry. We find the existence of market power exerted by US catfish processors. Processors force the price paid to catfish growers down by 52.88 cent per pound of live catfish, which costs US catfish growers about $300 million a year. US catfish growers can deter the negative effects of processors' market power by increasing their farm supply flexibility. Further studies are needed to address the dynamics and competitive game strategies in the US catfish industry.

Originalsprog	Engelsk
Artikelnummer	20190025
Tidsskrift	Journal of Agricultural and Food Industrial Organization
Vol/bind	20
Udgave nummer	2
Sider (fra-til)	1-11
Antal sider	11
DOI	https://doi.org/10.1515/jafio-2019-0025
Status	Udgivet - dec. 2022
Udgivet eksternt	Ja

Bibliografisk note

Published online: February 5, 2020.

Emneord

Market power
Welfare analysis
US catfish

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abstract = "An empirical specification of the conjectural variations model, which conforms to microeconomic theory, is estimated for the US catfish industry. We find the existence of market power exerted by US catfish processors. Processors force the price paid to catfish growers down by 52.88 cent per pound of live catfish, which costs US catfish growers about $300 million a year. US catfish growers can deter the negative effects of processors' market power by increasing their farm supply flexibility. Further studies are needed to address the dynamics and competitive game strategies in the US catfish industry.",

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author = "Nguyen, {Giap V.} and Jolly, {Curtis M.} and Nguyen, {Thong T.}",

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AU - Jolly, Curtis M.

AU - Nguyen, Thong T.

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PY - 2022/12

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N2 - An empirical specification of the conjectural variations model, which conforms to microeconomic theory, is estimated for the US catfish industry. We find the existence of market power exerted by US catfish processors. Processors force the price paid to catfish growers down by 52.88 cent per pound of live catfish, which costs US catfish growers about $300 million a year. US catfish growers can deter the negative effects of processors' market power by increasing their farm supply flexibility. Further studies are needed to address the dynamics and competitive game strategies in the US catfish industry.

AB - An empirical specification of the conjectural variations model, which conforms to microeconomic theory, is estimated for the US catfish industry. We find the existence of market power exerted by US catfish processors. Processors force the price paid to catfish growers down by 52.88 cent per pound of live catfish, which costs US catfish growers about $300 million a year. US catfish growers can deter the negative effects of processors' market power by increasing their farm supply flexibility. Further studies are needed to address the dynamics and competitive game strategies in the US catfish industry.

KW - Market power

KW - Welfare analysis

KW - US catfish

KW - Market power

KW - Welfare analysis

KW - US catfish

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DO - 10.1515/jafio-2019-0025

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