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The Competitive Structure of U.S. Agricultural Exports
Author(s) -
Pick Daniel H.,
Park Timothy A.
Publication year - 1991
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 - 10.2307/1242889
Subject(s) - market power , agriculture , economics , market structure , exchange rate , international economics , international trade , power (physics) , agricultural economics , business , monetary economics , industrial organization , market economy , ecology , biology , monopoly , physics , quantum mechanics
The competitive structure of U.S. agricultural exports is examined using a model of exporter behavior based on pricing decisions across destination markets. Market power is revealed in the adjustment patterns of export prices in response to exchange rate movements. The results reject the hypothesis that the export pricing decisions by U.S. firms are consistent with price discrimination across destination markets for cotton, corn, and soybeans. The strongest evidence against the competitive market structure is obtained for international trade in wheat, where results indicate that the two largest importers (Soviet Union and PRC) may exert market power to obtain lower prices.