Estimating the Extent of Imperfect Competition in the Food Industry: What Have We Learned?

Sheldon, Ian M.; Sperling, Richard

doi:10.1111/j.1477-9552.2003.tb00052.x

Cited by 59 publications

(57 citation statements)

References 57 publications

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“…If anything, these studies have highlighted the deficiencies in the ability of available economic models to fit either the behavior of supermarkets or the way they compete in the market place. This is not unexpected as the economic literature has highlighted that typical oligopoly/oligopsony models (including models of collusion) are quite simple and do not generally fit the stylised facts observed in retail markets (Sheldon & Sperling, 2003). The challenges that arise when trying to understand supermarkets' behavior are due in part to the scale and complexity of their operations.…”

Section: Introductionmentioning

confidence: 95%

Retailers Price Behavior in the UK Fresh Fruit and Vegetable Market

Revoredo‐Giha

Renwick

2012

Agribusiness

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The recent announcement in the UK by the largest supermarket chain (Tesco) of a sustained reduction in prices across a range of own-label products has once again focused attention on the issue of the nature of price competition between supermarkets. In this article, the authors inform the discussion on the issue of price competition through analysis of the interaction in the pricing behavior for fresh produce of two leading UK supermarkets, Tesco and Sainsbury's, over a 10-year period with the purpose of improving understanding of how they compete and the possible policy implications. Of particular interest is whether the nature of the interaction in pricing behavior between the two retailers changed as they moved from a situation where they had relatively similar market shares to one where Tesco became the dominant force in retailing in the UK. Through the literature possible price-leadership models are investigated and their empirical characteristics identified. The empirical analysis consisted of the investigation of price leadership using Granger causality tests on the series. In addition, due to the nature of the findings, interrelationships between the supermarket prices were modelled by means of vector autoregressive models for each product and the simulation of interactions between retailers using impulse-response functions. Though no clear evidence of systematic price leadership from Tesco to Sainsbury's was found, the results point to a strengthening interrelationship between the pricing of the two supermarkets over the period for a number of the products examined, which may be a result of the increased use of price checking across supermarket chains as a competitive tool. [JEL classifications: L000, L190, L130, C320]. C 2012 Wiley Periodicals, Inc.

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Section: Introductionmentioning

confidence: 95%

Retailers Price Behavior in the UK Fresh Fruit and Vegetable Market

Revoredo‐Giha

Renwick

2012

Agribusiness

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“…The issue of the relatively weak bargaining power of family farms as compared to companies operating at other stages of the food chain is an important benchmark in the debate on the effective market organization of the agricultural sector [1][2][3][4]. Consequently, measures aimed at strengthening farmers' market position have become an important part of agricultural policy [5,6].…”

Section: Introductionmentioning

confidence: 99%

Size of Membership and Survival Patterns of Producers’ Organizations in Agriculture—Social Aspects Based on Evidence from Poland

Chlebicka

Pietrzak

2018

Sustainability

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Agricultural producer organizations are considered to be an efficient way for farmers to build up bargaining power, thereby increasing farmers' incomes. While making a contribution to the research on the longevity of cooperatives, we tried to identify some regularities concerning the survival of these entities in the specific context of transition economies. In this paper, we look more closely at potential relationships between the development of producers' organizations (POs) and the size of their membership. Then, we link the size of the membership with the concept of social capital. For our purposes, it is necessary to depart from using a general concept of social capital and to differentiate between bonding and bridging social capital. Our results, based on two unique datasets from Poland, clearly showed that relatively larger POs have higher rates of survival. This, in turn, is correlated with the stock and the type of social capital. The main contribution of the study is in identifying the relevance of the size of the membership of newly-established POs to their survival. The findings are followed by policy recommendations that may be useful in the context of promoting farmers' cooperation in recognizing the low stock of social capital, specifically bridging social capital.

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“…The second method identifies the market power parameter through rotation of the demand curve (Bresnahan, 1982;Lau 1982). Bresnahan (1989), Sexton and Lavoie (2001), and Sheldon and Sperling (2003) provide overviews of these two approaches. Applications to agricultural product markets are provided by Buschena and Perloff (1991), Love and Murniningtyas (1992), and Azzam and Park (1993).…”

Section: Conceptual Modelmentioning

confidence: 99%

“…The demand rotation method requires the presence of an exogenous variable that interacts with price to determine demand. For example, changing socio-economic characteristics of the market faced by a CSA will cause the demand curve to shift allowing identification of both demand and marginal cost parameters (Sheldon and Sperling, 2003).…”

Section: Conceptual Modelmentioning

confidence: 99%

Market Power in Direct Marketing of Fresh Produce: Community Supported Agriculture Farms

2005

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Abstract:CSA farms establish a loyal customer base and, potentially, market power. A new empirical industrial organization (NEIO) approach and survey data from Northeast CSA farms are used to determine whether CSA farms have market power and the extent to which they exercise their market power. Results suggest CSA farms exert about two percent of their potential monopoly power. Abstract: CSA farms establish a loyal customer base and, potentially, market power. A new empirical industrial organization (NEIO) approach and survey data from Northeast CSA farms are used to determine whether CSA farms have market power and the extent to which they exercise their market power. Results suggest CSA farms exert about two percent of their potential monopoly power. Keywords

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Estimating the Extent of Imperfect Competition in the Food Industry: What Have We Learned?

Cited by 59 publications

References 57 publications

Retailers Price Behavior in the UK Fresh Fruit and Vegetable Market

Retailers Price Behavior in the UK Fresh Fruit and Vegetable Market

Size of Membership and Survival Patterns of Producers’ Organizations in Agriculture—Social Aspects Based on Evidence from Poland

Market Power in Direct Marketing of Fresh Produce: Community Supported Agriculture Farms

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