Measuring the Degree of Oligopsony Power in the Beef Packing Industry in the Absence of Marketing Input Quantity Data
We develop a model to measure the degree of oligopsony power in the beef packing industry, while accommodating variable proportions technology, that can be estimated with fewer data requirements. In particular, nonspecialized input quantities, which are often not available, are not needed. Through a...
| Main Authors: | , |
|---|---|
| Format: | Article |
| Language: | English |
| Published: |
Western Agricultural Economics Association
1999-12-01
|
| Series: | Journal of Agricultural and Resource Economics |
| Subjects: | |
| Online Access: | https://ageconsearch.umn.edu/record/30795 |
| _version_ | 1819083316598407168 |
|---|---|
| author | Mary K. Muth Michael K. Wohlgenant |
| author_facet | Mary K. Muth Michael K. Wohlgenant |
| author_sort | Mary K. Muth |
| collection | DOAJ |
| description | We develop a model to measure the degree of oligopsony power in the beef packing industry, while accommodating variable proportions technology, that can be estimated with fewer data requirements. In particular, nonspecialized input quantities, which are often not available, are not needed. Through application of the envelope theorem, we show that the relationship between value marginal product and marginal factor cost can be defined over the prices of the nonspecialized inputs rather than their corresponding quantities. When applied to the beef packing industry, we find no evidence of oligopsony power over our 1967-93 sample period. |
| first_indexed | 2024-12-21T20:30:38Z |
| format | Article |
| id | doaj.art-a5a24415e1bb47a99525f82350511f21 |
| institution | Directory Open Access Journal |
| issn | 1068-5502 2327-8285 |
| language | English |
| last_indexed | 2024-12-21T20:30:38Z |
| publishDate | 1999-12-01 |
| publisher | Western Agricultural Economics Association |
| record_format | Article |
| series | Journal of Agricultural and Resource Economics |
| spelling | doaj.art-a5a24415e1bb47a99525f82350511f212022-12-21T18:51:13ZengWestern Agricultural Economics AssociationJournal of Agricultural and Resource Economics1068-55022327-82851999-12-0124229931210.22004/ag.econ.3079530795Measuring the Degree of Oligopsony Power in the Beef Packing Industry in the Absence of Marketing Input Quantity DataMary K. MuthMichael K. WohlgenantWe develop a model to measure the degree of oligopsony power in the beef packing industry, while accommodating variable proportions technology, that can be estimated with fewer data requirements. In particular, nonspecialized input quantities, which are often not available, are not needed. Through application of the envelope theorem, we show that the relationship between value marginal product and marginal factor cost can be defined over the prices of the nonspecialized inputs rather than their corresponding quantities. When applied to the beef packing industry, we find no evidence of oligopsony power over our 1967-93 sample period.https://ageconsearch.umn.edu/record/30795beef industryenvelope theoremoligopsony powervariable proportions |
| spellingShingle | Mary K. Muth Michael K. Wohlgenant Measuring the Degree of Oligopsony Power in the Beef Packing Industry in the Absence of Marketing Input Quantity Data Journal of Agricultural and Resource Economics beef industry envelope theorem oligopsony power variable proportions |
| title | Measuring the Degree of Oligopsony Power in the Beef Packing Industry in the Absence of Marketing Input Quantity Data |
| title_full | Measuring the Degree of Oligopsony Power in the Beef Packing Industry in the Absence of Marketing Input Quantity Data |
| title_fullStr | Measuring the Degree of Oligopsony Power in the Beef Packing Industry in the Absence of Marketing Input Quantity Data |
| title_full_unstemmed | Measuring the Degree of Oligopsony Power in the Beef Packing Industry in the Absence of Marketing Input Quantity Data |
| title_short | Measuring the Degree of Oligopsony Power in the Beef Packing Industry in the Absence of Marketing Input Quantity Data |
| title_sort | measuring the degree of oligopsony power in the beef packing industry in the absence of marketing input quantity data |
| topic | beef industry envelope theorem oligopsony power variable proportions |
| url | https://ageconsearch.umn.edu/record/30795 |
| work_keys_str_mv | AT marykmuth measuringthedegreeofoligopsonypowerinthebeefpackingindustryintheabsenceofmarketinginputquantitydata AT michaelkwohlgenant measuringthedegreeofoligopsonypowerinthebeefpackingindustryintheabsenceofmarketinginputquantitydata |