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An Analysis of Market Structure and Pricing in the Florida Celery Industry

Published online by Cambridge University Press:  28 April 2015

Timothy G. Taylor  and
Richard L. Kilmer
Timothy G. Taylor
Affiliation:
Food and Resource Economics Department, Institute of Food and Agricultural Sciences, University of Florida, Gainesville, Florida 32611
Richard L. Kilmer
Affiliation:
Food and Resource Economics Department, Institute of Food and Agricultural Sciences, University of Florida, Gainesville, Florida 32611
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Abstract

The pricing behavior of the Florida celery industry under the current federal marketing order was examined by analyzing the implied market structure of the industry using a model proposed by Appelbaum. Point estimates of the oligopoly power index suggest that some degree of price enhancement above that which would be characterized by a perfectly competitive market may have occurred. However, the bulk of statistical evidence suggests that the departure from marginal cost pricing implied by the industry's pricing behavior is not statistically significant.

Keywords

celerymarket ordersoligopoly powerprice enhancement

Information

Type
Submitted Articles
Information
Journal of Agricultural and Applied Economics , Volume 20 , Issue 2 , December 1988 , pp. 35 - 44
Copyright
Copyright © Southern Agricultural Economics Association 1988

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