TY - JOUR
T1 - Agricultural policy modelling under imperfect competition
AU - Soregaroli, Claudio
AU - Sckokai, Paolo
AU - Moro, Daniele
PY - 2011
Y1 - 2011
N2 - This study evaluates the role of imperfect competition in determining the agri-food policies impact assessment outcomes. In most impact studies, the supply chain between agricultural production and final consumption is modelled in a perfectly competitive framework. However, there is a growing attention of stakeholders for the presence of imperfectly competitive markets, with the retail sector often being under investigation. This issue is empirically analysed with an application to the dairy industry. First, the degree of market power is estimated using a multi-output demand and price transmission equation system. Then, this model is used for policy simulation with the perfect competition outcome taken as a benchmark to evaluate the impact of imperfect competition. Results show a significant degree of market power in the dairy industry with implications on the projected policy scenarios. Moreover, the imperfect competition model alters the price transmission mechanisms, generating more flexible price trends.
AB - This study evaluates the role of imperfect competition in determining the agri-food policies impact assessment outcomes. In most impact studies, the supply chain between agricultural production and final consumption is modelled in a perfectly competitive framework. However, there is a growing attention of stakeholders for the presence of imperfectly competitive markets, with the retail sector often being under investigation. This issue is empirically analysed with an application to the dairy industry. First, the degree of market power is estimated using a multi-output demand and price transmission equation system. Then, this model is used for policy simulation with the perfect competition outcome taken as a benchmark to evaluate the impact of imperfect competition. Results show a significant degree of market power in the dairy industry with implications on the projected policy scenarios. Moreover, the imperfect competition model alters the price transmission mechanisms, generating more flexible price trends.
KW - Common agricultural policy
KW - Dairy sector
KW - Imperfect competition
KW - Policy evaluation
KW - Common agricultural policy
KW - Dairy sector
KW - Imperfect competition
KW - Policy evaluation
UR - https://publicatt.unicatt.it/handle/10807/6548
UR - https://www.scopus.com/inward/citedby.uri?partnerID=HzOxMe3b&scp=79953164466&origin=inward
UR - https://www.scopus.com/inward/record.uri?partnerID=HzOxMe3b&scp=79953164466&origin=inward
U2 - 10.1016/j.jpolmod.2010.12.001
DO - 10.1016/j.jpolmod.2010.12.001
M3 - Article
SN - 0161-8938
VL - 33
SP - 195
EP - 212
JO - Journal of Policy Modeling
JF - Journal of Policy Modeling
IS - 2
ER -