Imperfect Competition between Florida and Sao Paulo (Brazil) Orange Juice Producers in the U.S. and European Markets

Author

Jeff Luckstead, Stephen Devadoss and Ron Mittelhammer (mittelha@wsu.edu)

Journal of Agricultural and Resource Economics, 2015, vol. 40, issue 1

Abstract: We develop a strategic trade model to analyze the oligopolistic competition between Florida and São Paulo processors in the U.S. orange juice market and São Paulo processors in the European orange juice market. We obtain analytical results of the effects of changes in trade liberalization. A structural econometric model is derived from the theoretical model, and the new empirical industrial organization literature is used to estimate the market power of Florida and São Paulo producers. We simulate the effects of U.S. and European tariff reductions on prices, quantities, and trade volume

Keywords: market power; NEIO; orange juice; strategic trade policy; Crop Production/Industries; International Relations/Trade (search for similar items in EconPapers)
Date: 2015
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