Market conduct in US Cereal Industry

Essay specific features

 

Issue:

Business

 

Written by:

Kenneth S

 

Date added:

January 28, 2014

 

Level:

University

 

Grade:

A

 

No of pages / words:

9 / 2399

 

Was viewed:

1998 times

 

Rating of current essay:

 
Essay content:

This paper seeks to resolve this debate by determining whether cereal firms strategically interact on price, and if so, estimating the extent that this increases margins relative to what perfect collusion among firms could achieve. Firms are estimated to cooperate on price to the extent that margins are 2...
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This raises margins by about 43% of what could be achieved under a perfectly executed agreement to fix prices. The results are consistent with studies in the literature that characterize the industry’s pricing as “approximately cooperative.” KEYWORDS: collusion, cartel, oligopoly, cereal, shared monopoly, parallel pricing This paper evolved from an earlier AAEA Selected Paper co-authored with John Connor of Purdue University, and the author is very grateful to John for the key role he has played in making this study possible...
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