Price Effects of Common Ownership in the Seed Sector

59 Pages Posted: 14 Mar 2019 Last revised: 24 Apr 2019

See all articles by Mohammad Torshizi

Mohammad Torshizi

Department of Resource Economics and Environmental Sociology, University of Alberta

Jennifer Clapp

School of Environment, Resources and Sustainability, University of Waterloo

Date Written: April 22, 2019

Abstract

We evaluate the effects of the rise of common ownership in the U.S. seed sector. Using a theoretical model, we illustrate how common ownership changes the nature of competition among firms. Our empirical analysis shows that, even when taking measures to fully separate the effects of market concentration and common ownership, a significant contributor to increase in soy, corn and cotton seed prices over the 1997-2017 period is the rise of common ownership. These findings contribute to the current literature regarding the anticompetitive effects of common ownership and confirm the result of studies performed in other sectors, such as airlines.

Keywords: common ownership, prices, competition, market concentration, seeds, institutional investment

JEL Classification: L41, G32, G34

Suggested Citation

Torshizi, Mohammad and Clapp, Jennifer, Price Effects of Common Ownership in the Seed Sector (April 22, 2019). Available at SSRN: https://ssrn.com/abstract=3338485 or http://dx.doi.org/10.2139/ssrn.3338485

Mohammad Torshizi (Contact Author)

Department of Resource Economics and Environmental Sociology, University of Alberta ( email )

515 General Services Building
Edmonton, AB, T6G-2H1
Canada

Jennifer Clapp

School of Environment, Resources and Sustainability, University of Waterloo ( email )

Waterloo, Ontario N2L 3G1
Canada

HOME PAGE: http://https://uwaterloo.ca/environment-resources-and-sustainability/people-profiles/jennifer-clapp

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