Measuring Market Power in the French Comté Cheese Market

Mérel, Pierre R.

doi:jbp004

Abstract

Measuring Market Power in the French Comté Cheese Market

Pierre R. Mérel

University of California, Davis - Department of Agricultural and Resource Economics

European Review of Agricultural Economics, Vol. 36, No. 1, pp. 31-51, 2009

Abstract:
A new empirical industrial organisation approach is used to measure seller market power in the French Comté cheese market, characterised by government-approved supply control. The estimation is performed on quarterly data at the wholesale stage over the period 1985-2005. Three different elasticity shifters are included in the demand specification, and the supply equation accounts for the existence of the European dairy quota policy. The market power estimate is small and statistically insignificant. Monopoly is clearly rejected. Results appear to be robust to the choice of functional form and suggest little effect of the supply control scheme on consumer prices.

Keywords: supply control, market power, NEIO, Comté cheese, protected designation of origin

JEL Classification: L13, L41, Q18

Accepted Paper Series

Date posted: April 28, 2009

Suggested Citation

Mérel, Pierre R., Measuring Market Power in the French Comté Cheese Market. European Review of Agricultural Economics, Vol. 36, No. 1, pp. 31-51, 2009. Available at SSRN: http://ssrn.com/abstract=1394129 or http://dx.doi.org/jbp004

Contact Information

Pierre R. Mérel (Contact Author)

University of California, Davis - Department of Agricultural and Resource Economics ( email )

One Shields Avenue
Davis, CA 95616
United States