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Oligopsony power with uniform spatial pricing: theory and application to milk processing in Spain

Title: Oligopsony power with uniform spatial pricing: theory and application to milk processing in Spain
Authors: Alvarez, AM; Fidalgo, EG; Sexton, RJ; Zhang, M
Publisher Information: Oxford University Press
Publication Year: 2000
Collection: HighWire Press (Stanford University)
Subject Terms: Articles
Description: This study presents a conceptual and empirical analysis of buyer oligopsony power in a spatial markets setting. The conceptual model analyses behaviour in a market with uniform spatial prices and Löschian conduct. A key result is that firms may set prices above the monopsony level to minimise direct competition among themselves. The empirical analysis focuses on the purchase of milk in the Asturias region of Spain and utilises a panel of firm-level data to study the determinants of milk processors' pricing behaviour. Estimation results strongly support the predictions of the theoretical model.
Document Type: text
File Description: text/html
Language: English
Relation: http://erae.oxfordjournals.org/cgi/content/short/27/3/347; http://dx.doi.org/10.1093/erae/27.3.347
DOI: 10.1093/erae/27.3.347
Availability: http://erae.oxfordjournals.org/cgi/content/short/27/3/347; https://doi.org/10.1093/erae/27.3.347
Rights: Copyright (C) 2000, Foundation for the European Review of Agricultural Economics
Accession Number: edsbas.60C74253
Database: BASE