Hostname: page-component-586b7cd67f-2plfb Total loading time: 0 Render date: 2024-11-30T05:40:41.087Z Has data issue: false hasContentIssue false
  • English
  • Français

An Analysis of Market Structure and Pricing in the Florida Celery Industry

Published online by Cambridge University Press:  28 April 2015

Timothy G. Taylor  and
Richard L. Kilmer
Timothy G. Taylor
Affiliation:
Food and Resource Economics Department, Institute of Food and Agricultural Sciences, University of Florida, Gainesville, Florida 32611
Richard L. Kilmer
Affiliation:
Food and Resource Economics Department, Institute of Food and Agricultural Sciences, University of Florida, Gainesville, Florida 32611
Get access Rights & Permissions [Opens in a new window]

Abstract

The pricing behavior of the Florida celery industry under the current federal marketing order was examined by analyzing the implied market structure of the industry using a model proposed by Appelbaum. Point estimates of the oligopoly power index suggest that some degree of price enhancement above that which would be characterized by a perfectly competitive market may have occurred. However, the bulk of statistical evidence suggests that the departure from marginal cost pricing implied by the industry's pricing behavior is not statistically significant.

Keywords

celerymarket ordersoligopoly powerprice enhancement
Type
Submitted Articles
Information
Journal of Agricultural and Applied Economics , Volume 20 , Issue 2 , December 1988 , pp. 35 - 44
Copyright
Copyright © Southern Agricultural Economics Association 1988

Access options

Get access to the full version of this content by using one of the access options below. (Log in options will check for institutional or personal access. Content may require purchase if you do not have access.)

References

Appelbaum, E. “The Estimation of the Degree of Oligopoly Power.” Journal of Econometrics, 19(1982):287–299.CrossRefGoogle Scholar
Azzam, A., Pagoulatos, E., and Yanagida, J.. “Testing for Non-competitive Behavior in Input Markets: An Application to the Meat Packing Industry.” Paper presented at the 1986 meeting of the American Agricultural Economics Association. Brooke, D. “Changes in the Structure of Florida Vegetable Farms, 1945-74.” Food and Resource Economics Department Staff Paper No. 138, University of Florida, October 1979.Google Scholar
Brooke, D. “Costs and Returns From Vegetable Crops in Florida with Comparisons.” Food and Resource Economics Department Economic Information Report, selected issues.Google Scholar
Diewert, W.E. “An Application of the Shephard Duality Theorem: A Generalized Leontief Production Function.” J. Polit. Econ., 6-7(1971):481–507.CrossRefGoogle Scholar
Diewert, W.E. “Exact and Superlative Index Numbers.” J. of Econometrics, 4(1976):115–146.CrossRefGoogle Scholar
Florida Agricultural Statistics. Vegetable Summary. Orlando: Florida Crop and Livestock Reporting Service, selected issues.Google Scholar
Gallant, A.R., and Jorgenson, D.W.. “Statistical Inference for a System of Simultaneous, Non linear, Implicit Equations in the Context of Instrumental Variable Estimation.” Journal of Econometrics, 11(1979):275–302.CrossRefGoogle Scholar
Gorman, W.M. “Community Preference Fields.” Econometrica, 21(1953):63–80.CrossRefGoogle Scholar
Jesse, E.V., and Johnson, A.C Jr. Effectiveness of Federal Marketing Orders for Fruits and Vegetables. Washington D.C. USDA-ERS Agr. Econ. Rep. 471, June 1981.Google Scholar
Lau, L.J. “Applications of Profit Functions.” In Production Economics: A Dual Approach to Theory and Applications. Ed. Fuss, M..and McFadden, D.. New York: North Holland Publishing Co., 1978.Google Scholar
Lucier, G., Chesley, A., and Ahearn, M.. Farm Income Data: A Historical Perspective. Washington D.C. USDA NED ERS Stat. Bull. 740, May 1986.Google Scholar
Polopolus, L.C., Carman, H.F., Jesse, E.V., and Shaffer, J.D.. Criteria for Evaluating Federal Marketing Orders: Fruits, Vegetables, Nuts, and Specialty Commodities. Washington D.C. Report prepared for USDA-ERS, December 1986.Google Scholar
Schroeter, J.R. “Estimating the Degree of Monopsony Power in the U.S. Beef Packing Industry.” Paper presented at the 1986 meeting of the American Agricultural Economics Association.Google Scholar
Shephard, R.W.Cost and Production Functions. New York: Springer-Verlag, 1953.Google Scholar
Shonkwiler, J.S., and Pagoulatos, E.. “A Model of Weekly Price Discovery for Florida Celery.” So. J. Agr. Econ, 12 (July 1980):113–118.Google Scholar
Taylor, T.G. “Costs and Returns from Vegetable Crops in Florida, Season 1980-81 with Comparisons.” Food and Resource Economics Department Economic Information Report No. 159, University of Florida, June 1982.Google Scholar
Taylor, T.G., and Wilkowske, G.H.. “Costs and Returns from Vegetable Crops in Florida, Season 1981-82 with Comparisons.” Food and Resource Economics Department Economics Information Report No. 186, University of Florida, July 1983.Google Scholar
U.S. Department of Agriculture. Agricultural Prices. Washington D.C. Agricultural Marketing Service, selected issues.Google Scholar
U.S. Department of Agriculture. Economic Indicators of the Farm Sector: Production and Efficiency Statistics. Washington D.C.: USDA NED ERS ECIFS 2-5, February, 1984.Google Scholar
U.S. Department of Agriculture. Vegetables-Fresh Market Annual Summary. Washington D.C. Statistical Reporting Service, selected issues.Google Scholar
Updaw, N.J. “A Model of Weekly Price Discovery for Florida Celery: Comment.” So. J. Agr. Econ, 12(December 1980):161–162.Google Scholar
Waterson, M.Economic Theory of the Industry. Cambridge: Cambridge University Press, 1984.Google Scholar