Price or Quantity Competition?: Oligopolistic Structures in International Commodity Markets

REVIEW OF INTERNATIONAL ECONOMICS

Posted: 30 Apr 1998

See all articles by Colin A. Carter

Colin A. Carter

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

Donald MacLaren

University of Melbourne - Department of Economics

Abstract

International commodity markets may be characterised by price or quantity competition and by product differentiation. As an illustration, we present a set of models of the Japanese market for imported beef. The models are evaluated using an non-nested econometric test. The one which best fits the data is a Stackelberg model with price leadership by Australia. This result provides evidence on the explicit nature of the game being played by exporters, unlike the applied conjectural variations approach which only provides an index of how competitive the market is.

JEL Classification: F12, F14, C71

Suggested Citation

Carter, Colin A. and MacLaren, Donald, Price or Quantity Competition?: Oligopolistic Structures in International Commodity Markets. REVIEW OF INTERNATIONAL ECONOMICS. Available at SSRN: https://ssrn.com/abstract=3233

Colin A. Carter

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

One Shields Avenue
Davis, CA 95616
United States

Donald MacLaren (Contact Author)

University of Melbourne - Department of Economics ( email )

Victoria 3010, 3010
Australia
(61) 3 8344-5035 (Phone)
(61) 3 8344-6899 (Fax)

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