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Wheat Cartelization and Domestic Markets
Author(s) -
Chambers Robert G.,
Woolverton Michael W.
Publication year - 1980
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 - 10.2307/1239760
Subject(s) - cartel , cheating , business , industrial organization , collusion , biology , ecology
The effects of cartelization in the international wheat market are analyzed. Particular attention is given to the relationship between the level of cartel profits and the price farmers receive for their wheat. Sufficient conditions are established for a rise in cartel profits to be associated with a rise in the farmgate price of wheat. The potential stability of a cartel formed by the major trading companies also is investigated and a means of preventing cheating is introduced and discussed.