Hostname: page-component-cd9895bd7-dzt6s Total loading time: 0 Render date: 2024-12-19T04:14:11.314Z Has data issue: false hasContentIssue false
  • English
  • Français

Measuring the Intensity of Competition in the Japanese Beef Market

Published online by Cambridge University Press:  28 April 2015

Michael R. Reed  and
Sayed H. Saghaian
Michael R. Reed
Affiliation:
Department of Agricultural Economics, University of Kentucky, Lexington, KY
Sayed H. Saghaian
Affiliation:
Department of Agricultural Economics, University of Kentucky, Agricultural Economics Faculty of Agriculture, Food, and Natural Resources, University of Sydney, Sydney, Australia
Get access Rights & Permissions [Opens in a new window]

Abstract

A residual demand model for beef exports to Japan is specified and estimated. The objective is to estimate the extent of market power. It is assumed that each exporting country faces a downward-sloping residual demand curve, which reflects the market demand minus the supplies of competitors, and that exporters maximize profit through their output decisions. The analysis is disaggregated by beef cut and form to capture the variation by beef market segments. The results indicate that the highest markup of price over marginal cost belongs to U.S. frozen ribs, the only indication of market power by U.S. exporters. Canada is found to have limited market power, whereas Australia and New Zealand enjoy some market power, including five chilled beef categories.

Keywords

beefJapanmarket powermarket shareresidual demandF12L13Q17
Type
Articles
Information
Journal of Agricultural and Applied Economics , Volume 36 , Issue 1 , April 2004 , pp. 113 - 121
Copyright
Copyright © Southern Agricultural Economics Association 2004

Access options

Get access to the full version of this content by using one of the access options below. (Log in options will check for institutional or personal access. Content may require purchase if you do not have access.)

References

Agriculture and Livestock Industries Corporation (ALIC). ALIC Monthly Statistics. Tokyo: ALIC, various issues.Google Scholar
Baker, J.B., and Bresnahan, T.F.. “Estimating the Residual Demand Curve Facing a Single Firm.” International Journal of Industrial Organization 6(1988):283–300.CrossRefGoogle Scholar
Barnett, P.G., Keeler, T.E., and Hu, T.. “Oligopoly Structure and the Incidence of Cigarette Excise Taxes.” Journal of Public Economics 57(1997):457–70.CrossRefGoogle Scholar
Bresnahan, T.E. “Empirical Studies of Industries with Market Power.” Schmalensee, R. and Willig, R., eds., pp. 1001–57. Handbook of Industrial Organization, Volume 2. North-Holland, Amsterdam, 1989.Google Scholar
Comeau, A., Mittelman, R.C., and Wahl, T.I.. “Assessing the Effectiveness of MPP and TEA Promotion Efforts in the Japanese Market for Meat.” Journal of Food Distribution Research (July 1997):27–35.Google Scholar
Economic Planning Agency of Japan. Internet site: www.epa.go.jp/2000/g/qe003/gdmenue.html (Accessed April 2001).Google Scholar
Erikson, G.R., Wahl, T.I., Jussaume, R.A., and Shi, H.. “Product Characteristics Affecting consumers' Fresh Beef Cut Purchasing Decisions in the U.S., Japan, and Australia.” Journal of Food Distribution Research (November 1997):16–25.Google Scholar
Gil-Pareja, S. “Exchange Rates and European Countries’ Export Prices.” Review of World Economics 136(2000):1–23.Google Scholar
Glauben, T., and Loy, J.-P.. “Pricing-to-Market versus Residual Demand Elasticity Analysis of Imperfect Competition in Food Exports: Evidence from Germany.” Journal of Agricultural & Food Industrial Organization 1,1 (2002):1004. Internet site: http://www.bepress.com/jafio/voll/issl/art3 (Accessed February 2002).CrossRefGoogle Scholar
Goldberg, P., and Knetter, M.M.. “Goods Prices and Exchange Rates: What Have We Learned?” Journal of Economic Literature 25 (September 1997):1243–72.Google Scholar
Goldberg, P., and-. “Measuring the Intensity of Competition in Export Markets.” Journal of International Economics 47(1999):27–60.CrossRefGoogle Scholar
Hayes, D.J., ed. Meat Marketing in Japan: A Guide for U.S. Meat Exporting Companies. Des Moines, IA: Midwest Agribusiness Trade Research and Information Center, 1990.Google Scholar
International Monetary Fund (IMF). International Financial Statistics. Washington, DC: IMF, various issues.Google Scholar
Kerr, W.A., Kline, K.K., Hobbs, J.E., and Ka-gatsume, M.. Marketing Beef in Japan. New York: Food Products Press, 1994.Google Scholar
Khan, L., Ramaswami, S., and Sapp, S.G.. Meat Marketing in Japan: A Guide for U.S. Meat Exporting Companies. Hayes, D.J., ed. Des Moines and Ames, IA: Midwest Agribusiness Trade Research and Information Center, 1990.Google Scholar
Knetter, M.M. “Price Discrimination by U.S. and German Exporters.” The American Economic Review 79(1989):198–210.Google Scholar
Knetter, M.M. “International Comparisons of Pricing-to-Market Behavior.” American Economic Review 83(1993):473–86.Google Scholar
Krugman, P. “Pricing to Market when Exchange Rate Changes.” Arndt, S.W. and Richardson, J.D., eds., pp. 49–70. Real Financial Linkages in Open Economies. Cambridge, MA: MIT Press, 1987.Google Scholar
Le, CT., Kaiser, H.M., and Tomek, W.G.. “Export Promotion and Import Demand for U.S. Red Meat in Selected Pacific Rim Countries.” National Institute for Commodity Promotion Research and Evaluation, NICPRE 97-04, September 1997.Google Scholar
Longworth, J.W.Beef in Japan. New York: University of Queensland Press, 1984.Google Scholar
United Nations. Food and Agriculture Organization (FAO) Database. CD-Rom. Rome: FAO.Google Scholar
U.S. Meat Export Federation (MEF). Personal correspondence and interviews with marketing specialists. April-May 2002.Google Scholar