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Investigating market power in the Belgian pork production chain

机译:调查市场力量在比利时猪肉生产链

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Belgian pork production has faced stagnating prices for decades. It remains unclear whether excessive market power from slaughterhouses or meat retailers has played a role in this trend. While market power studies can reveal some of the market dynamics in this setting, this type of research has not yet been applied to the Belgian pork market. The present paper investigates oligopolies and oligopsonies in the pork production sector. We build a new model that focuses on market power dynamics in the market for live pigs and distinguishes horizontal and vertical market power parameters, both for pig farmers and for slaughterhouses. The results follow from an empirical application using unique slaughterhouse data for 2001-2015. The results indicate thatthe farmers benefit from a significant power advantage in the live pig market, when very modest price demands are taken as a reference. The final market price of live pigs approaches the price requested by the farmers. On the other hand, the measured vertical market power also suggests that a pig farmer does not receive the (modest) full-wage-based salary. The market power of the slaughterhouses is also limited. Market power as a result of collusion—that is, horizontal market power—is present, but isnot strong. However, there are significant differences between the slaughterhouses in terms of mark-up on the input prices. These differences reflect differences in company strategy, and this diversity further reduces the possibility to create sector-wide collusive behaviour.
机译:比利时猪肉生产面临着停滞不前价格几十年了。从屠宰场或过度的市场力量在这一趋势肉零售商发挥了作用。虽然市场力量的研究可以揭示一些在此设置市场动态,这种类型的研究尚未应用到比利时猪肉市场。寡头垄断和寡头买主垄断猪肉生产部门。关注市场的市场权力动力学生猪和不同水平和垂直市场力参数,对猪农民和屠宰场。遵循从使用独特的实证应用程序屠宰场2001 - 2015年的数据。表明,农民受益巨大的力量优势的生猪市场,当非常温和的价格要求作为参考。猪的方法所要求的价格农民。市场力量也表明,猪的农民不接收(温和)full-wage-based薪水。市场力量的屠宰场也有限的。官商勾结,水平增强市场存在,但并不强劲。之间的显著差异屠宰场的标记的输入价格。公司战略,这进一步多样化减少了创建整个行业的可能性共谋的行为。

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