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

Lass, Daniel A.; Lavoie, Nathalie; Fetter, T. Robert

doi:10.2139/ssrn.673604

Cited by 13 publications

(19 citation statements)

References 12 publications

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“…As a counter to this high level of market power among shoppers we found that customer loyalty provided farmers markets with an advantage. This is consistent with the factors that Lass et al (2005) found: higher customer loyalty improved a CSA's ability to capture more profits. " [T]he nature of their products, i.e., fresh organic vegetables produced from a known source, is such that consumer loyalty and 'brand' recognition make consumers captive to a given farm" (p. 5).…”

Section: Competitive Analysissupporting

confidence: 83%

“…They mention such strategies as operating on different days from nearby markets, extending the operating season, and building upon location-specific features (e.g., nearby businesses, parks, access to parking). Another exception is Lass, Lavoie, and Fetter (2005), whose study of Community Supported Agriculture (CSA) is directly relevant to farmers markets. They conclude that CSA operations have the ability to turn customer loyalty and ideological relations with customers into profits.…”

Section: Competitive Analysismentioning

confidence: 99%

See 1 more Smart Citation

Strengthening the Core Business of Farmers Markets through Strategic Business Planning

Connell

Hergesheimer

2014

JAFSCD

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Section: Competitive Analysissupporting

confidence: 83%

Section: Competitive Analysismentioning

confidence: 99%

Strengthening the Core Business of Farmers Markets through Strategic Business Planning

Connell

Hergesheimer

2014

JAFSCD

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“…Despite an abundance of different structural models and methods developed for the analysis of market power, a closer look at the articles published in the past three decades reveals that the range of methods used empirically is limited to only two approaches, namely PTA and GIM (Sheldon and Sperling, ; Lass et al ., ). The first widely used approach for measuring the degree of oligopoly power is the PTA pioneered by Appelbaum () in the analysis of the Canadian food processing industry and further elaborated by Lopez ().…”

Section: Review Of Empirical Studies Of Market Power In the Agricultumentioning

confidence: 97%

Approaches and Methods for the Econometric Analysis of Market Power: A Survey and Empirical Comparison

Perekhozhuk

Glauben

Grings

et al. 2016

Journal of Economic Surveys

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This study discusses two widely used approaches in the New Empirical Industrial Organization (NEIO) literature and examines the strengths and weaknesses of the Production-Theoretic Approach (PTA) and the General Identification Method (GIM) for the econometric analysis of market power in agricultural and food markets. We provide a framework that may help researchers to evaluate and improve structural models of market power. Starting with the specification of the approaches in question, we compare published empirical studies of market power with respect to the choice of the applied approach, functional forms, estimation methods and derived estimates of the degree of market power. Thereafter, we use our framework to evaluate several structural models based on PTA and GIM to measure oligopsony power in the Ukrainian dairy industry. The PTA-based results suggest that the estimated parameters of oligopsony power are significantly different from zero, while GIM-based results do not indicate any evidence of oligopsony market power in the Ukrainian dairy industry. Moreover, estimations results vary substantially due to the employed estimation procedure.Recent decades and years have been characterized by comprehensive advancements in various fields of economics, for example the recent developments in the application of theoretical and empirical concepts of NEIO. These advancements comprise, among others, the introduction of new and more flexible functional forms in econometric analysis and newly developed system estimation methods, particularly nonlinear full information methods. Given these developments, empirical studies of market power have become more sophisticated and provide new possibilities of using time-series and cross-sections data sets. These developments allow, for example, the extension of empirical models, which enables researchers to more precisely analyse and evaluate the degree of market power.A rather large number of studies are available in this research area dealing with a wide range of countries, markets or industries. Moreover, these studies are based on different information bases, that is, different aggregation levels, and employ different data frequencies and market structure models. Table 1 provides a detailed overview of existing market structure models in the field of agricultural and food markets focusing on homogenous products, and compares them with respect to their choice of functional forms, estimation methods and estimates of the degree of market power. 2 In total, 38 studies are included in the review, arranged by author's name in alphabetical order.Most empirical studies of market power have been conducted based on empirical data from developed countries such as Australia, Canada, France, Germany, and the United States.Within the empirical studies listed in Table 1, special attention has been paid to the examination of market power in beef packing industries (Schroeter). The majority of investigations involved estimating the degree of oligopoly and/or oligopsony power in markets for mea...

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“…Previous research, however, attests to the unsatisfactory improvement of local economy (e.g. Lass, Lavoie & Fetter, 2005). The relative importance of local sales or local supply chains is related to factors such as the company's size, its geographic location, e.g.…”

Section: Economic Benefitsmentioning

confidence: 99%

Procurement in Short Supply Chains: Lessons Learned from the Tourism Industry

Argyropoulou¹,

Argyropoulou²,

Dimitris³

et al. 2019

IJBESAR

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This paper explores the procurement management strategies adopted in 100 five-star hotels operating in a highly touristic area in South Greece. The study identifies and discusses the benefits and the challenges of managing short supply chains in the selected region. Design/methodology/approach: Quantitative data were gathered by using a questionnaire with 16 closed-ended and 3 open-ended questions. The sample included the Managing Directors and some Administrators. The questionnaire was filled in between April 2017 and June of the same year. Findings: The majority of the respondents prefer to do business with local suppliers for a variety of reasons, the most important being the boost of local economy and immediate delivery which improves response time. High prices of local products and the availability of sufficient quantities were found the main concerns for the smooth running of operations. Research limitations/implications: The research uses data from two prefectures of Crete; a wider sample including other prefectures in Greece and in South Europe would provide a more holistic view on the effectiveness of short food supply chains. Originality/value: This paper makes a contribution by examining how short supply chains can be developed in local economies. This paper explores the procurement management strategies adopted in 100 five-star hotels operating in a highly touristic area in South Greece. The study identifies and discusses the benefits and the challenges of managing short supply chains in the selected region. The majority of the respondents prefer to do business with local suppliers for a variety of reasons, the most important being the boost of local economy and immediate delivery which improves response time. High prices of local products and the availability of sufficient quantities were found the main concerns for the smooth running of operations. Supplier selection criteria are also discussed.

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

Cited by 13 publications

References 12 publications

Strengthening the Core Business of Farmers Markets through Strategic Business Planning

Strengthening the Core Business of Farmers Markets through Strategic Business Planning

Approaches and Methods for the Econometric Analysis of Market Power: A Survey and Empirical Comparison

Procurement in Short Supply Chains: Lessons Learned from the Tourism Industry

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