Premium
Imperfect Competition in a Vertical Market Network: The Case of Rubber in Thailand
Author(s) -
Stifel Laurence D.
Publication year - 1975
Publication title -
american journal of agricultural economics
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 1.949
H-Index - 111
eISSN - 1467-8276
pISSN - 0002-9092
DOI - 10.2307/1238881
Subject(s) - monopsony , imperfect competition , competition (biology) , imperfect , principal (computer security) , market competition , market structure , vertical restraints , network structure , industrial organization , economics , microeconomics , econometrics , computer science , market economy , ecology , linguistics , philosophy , machine learning , biology , operating system , incentive
The efficiency of the sheet rubber marketing system in Thailand is analyzed in the framework of the structure‐conduct‐performance model from the field of industrial organization. Market performance is evaluated by the degree of monopsony profits and progressiveness. Examination of the multiple relationships at the three principal levels of the vertical network indicates that the system does not fit pure models of microeconomic theory. Comprehensive analysis leads to different conclusions than the more traditional, partial analysis. Diagnosing the structural and behavioral determinants of performance also assists in identifying policy measures to improve marketing efficiency.