Revisiting Concentration in Food and Agricultural Supply Chains: The Welfare Implications of Market Power in a Complementary Input Sector

Author

Çakır, Metin and James Nolan (james.nolan@usask.ca)
Authors registered in the RePEc Author Service: Metin Cakir (mcakir@umn.edu)

Journal of Agricultural and Resource Economics, 2015, vol. 40, issue 2

Abstract: We explore how market power in a complementary input sector compares to that in a downstream sector for producer and consumer welfare. We develop a model of a homogeneous product market encompassing bilateral and complementary relationships. Our main finding is that market power exercised by the supplier of a complementary input generates greater negative welfare effects than the same level of market power exercised by downstream firms. We provide a discussion of the implications of the results for policy in the context of current problems in the Canadian grain-handling and transportation system.

Keywords: Complementary sectors; grain handling; market power; supply chain competitiveness; transportation; Food Consumption/Nutrition/Food Safety; Marketing (search for similar items in EconPapers)
Date: 2015
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Related works:
Working Paper: Revisiting Concentration in Food and Agricultural Supply Chains: The Welfare Implications of Market Power in a Complementary Input Sector (2014) 
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Persistent link: http://EconPapers.repec.org/RePEc:ags:jlaare:206593

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