Oligopsony Potential in Agriculture: Residual Supply Estimation in California's Processing Tomato Market
通过估计剩余供给函数，分析加州加工番茄市场中买方垄断力量的潜力，发现该市场的买方垄断潜力有限。
Abstract Farmers' selling opportunities are often limited because of few processor/handlers and costly‐to‐transport raw products. This paper develops an empirical model to analyze the potential for exercise of monopsony power in these food markets. The approach is based on estimation of residual supply functions facing a processor or group of processors. Residual supply is the raw product supply facing a processor or group of processors after rivals' demands for the product have been accounted for. The model is applied to the processing tomato industry in California. Estimation results suggest that the oligopsony potential in this market is limited.