Competition in Local Food Markets
While local food production plays an increasingly prominent role in U.S. agriculture, there is growing concern about oversaturation. Using a national dataset, we identify locational attributes that are conducive to the establishment of direct-marketing operations and assess competitive behavior. Our...
| Main Authors: | , |
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| Format: | Article |
| Language: | English |
| Published: |
Western Agricultural Economics Association
2019-05-01
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| Series: | Journal of Agricultural and Resource Economics |
| Subjects: | |
| Online Access: | https://ageconsearch.umn.edu/record/287980 |
| _version_ | 1817997466756186112 |
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| author | Cristina Connolly H. Allen Klaiber |
| author_facet | Cristina Connolly H. Allen Klaiber |
| author_sort | Cristina Connolly |
| collection | DOAJ |
| description | While local food production plays an increasingly prominent role in U.S. agriculture, there is growing concern about oversaturation. Using a national dataset, we identify locational attributes that are conducive to the establishment of direct-marketing operations and assess competitive behavior. Our model links firm-entry decisions to market size using reduced-form profit functions, which are characterized by the cost of agricultural land and demand variables. We find significant heterogeneity in the required population to support direct-marketing entrants and show that markets become perfectly competitive upon entry of the third direct-marketing establishment, with heterogeneous market potential for new entrants. |
| first_indexed | 2024-04-14T02:37:31Z |
| format | Article |
| id | doaj.art-20054197ec0e491d9d1dfa608cb0eb75 |
| institution | Directory Open Access Journal |
| issn | 1068-5502 2327-8285 |
| language | English |
| last_indexed | 2024-04-14T02:37:31Z |
| publishDate | 2019-05-01 |
| publisher | Western Agricultural Economics Association |
| record_format | Article |
| series | Journal of Agricultural and Resource Economics |
| spelling | doaj.art-20054197ec0e491d9d1dfa608cb0eb752022-12-22T02:17:17ZengWestern Agricultural Economics AssociationJournal of Agricultural and Resource Economics1068-55022327-82852019-05-0144232834410.22004/ag.econ.287980287980Competition in Local Food MarketsCristina ConnollyH. Allen KlaiberWhile local food production plays an increasingly prominent role in U.S. agriculture, there is growing concern about oversaturation. Using a national dataset, we identify locational attributes that are conducive to the establishment of direct-marketing operations and assess competitive behavior. Our model links firm-entry decisions to market size using reduced-form profit functions, which are characterized by the cost of agricultural land and demand variables. We find significant heterogeneity in the required population to support direct-marketing entrants and show that markets become perfectly competitive upon entry of the third direct-marketing establishment, with heterogeneous market potential for new entrants.https://ageconsearch.umn.edu/record/287980direct marketingmarket entrymarket structure |
| spellingShingle | Cristina Connolly H. Allen Klaiber Competition in Local Food Markets Journal of Agricultural and Resource Economics direct marketing market entry market structure |
| title | Competition in Local Food Markets |
| title_full | Competition in Local Food Markets |
| title_fullStr | Competition in Local Food Markets |
| title_full_unstemmed | Competition in Local Food Markets |
| title_short | Competition in Local Food Markets |
| title_sort | competition in local food markets |
| topic | direct marketing market entry market structure |
| url | https://ageconsearch.umn.edu/record/287980 |
| work_keys_str_mv | AT cristinaconnolly competitioninlocalfoodmarkets AT hallenklaiber competitioninlocalfoodmarkets |