THE PROBLEM OF GEOGRAPHICAL DELIMITATION OF AGRI-FOOD MARKETS: EVIDENCE FROM THE BUTTER MARKET IN EUROPEAN UNION

Main Article Content

Michał Pietrzak
Monika Roman


Keywords : market delimitation, delineation of geographic scope, agri-food market, butter market, European Union
Abstract
Although market is a basic economic category, many studies neglect the need to define it in geographical dimension. It is fundamentally important in agribusiness, where the spatial competition and problem of market power at successive stages of supply chain occur. The aims of the paper are twofold: to discuss the problem of geographical delimitation of agricultural markets and to define geographic limits of the butter market based on Elzinga–Hogarty method. Using secondary data we find that the butter market is international in the scope, and after the abolition of the milk quota, this scope is evolving from European to semi-global.

Article Details

How to Cite
Pietrzak, M., & Roman, M. (2018). THE PROBLEM OF GEOGRAPHICAL DELIMITATION OF AGRI-FOOD MARKETS: EVIDENCE FROM THE BUTTER MARKET IN EUROPEAN UNION. Acta Scientiarum Polonorum. Oeconomia, 17(3), 85–95. https://doi.org/10.22630/ASPE.2018.17.3.40
References

Acosta, A., Ihle, R., Robles, M. (2014). Spatial Price Transmission of Soaring Milk Prices From Global to Domestic Markets. Agribusiness, 30 (1), 64-73. (Crossref)

Audy, E., Erutku, C. (2005). Rice Tests to Define Markets: An Application to Wholesale Gasoline in Canada. Journal of Industry Competition and Trade, 5 (2), 137-54. (Crossref)

Bakucs, Z., Fałkowski, J., Ferto, I. (2010). Milk Market Integration between Hungary and Poland. Materiały konferencyjne zamieszczone na stronie internetowej http://ageconsearch.umn.edu/bitstream/91809/2/74Bakucs_falkowski_ferto.pdf [accessed: 30.03.2016].

Bain, J.S. (1967). Barriers to New Competition. Harvard University Press, Cambridge.

Biscaia, R., Mota, I. (2013). Models of spatial competition: A critical review. Papers in Regional Science, 92 (4), 851-871. (Crossref)

Blaug, M. (1990). Economic Theory in Retrospect. Cambridge University Press, Cambridge.

Brorsen, B.W., von Bailey, D., Thomsen, M.R. (1997). Mapping Market Areas Using Nonparametric Smoothing. Geographical Analysis, 29 (3), 214-231. (Crossref)

Canadian Dairy Information Centre - CDIC (2017). Global butter consumption (kg per capita) in 2013 and 2015. Retrieved form: http://www.dairyinfo.gc.ca/index_e.php?s1=dff-fcil&s2=cons&s3=consglo&s4=tb-bt.

Chantreuil, F., Donnellan, T., Van Leeuwen, M., Salamon, P., Tabeau, A., Bartova, L. (2008). EU Dairy Quota Reform - AGMEMOD Scenario Analysis. In: European Association of Agricultural, XVII International Congress Economists, Ghent, 26-29.08.2008.

Christos, J. (2012). Emmanouilides and Panos Fousekis, Testing for the LOP under nonlinearity: an application to four major EU pork markets. Agricultural Economics, 43 (6), 715-723. (Crossref)

Crane, S.E., Welch, P.J. (1991). The Problem of Geographic Market Definition: Geographic Proximity vs. Economic Significance. Atlantic Economic Journal, 19 (2), 12-20. (Crossref)

Crespi, J.M., Saitone, T.L., Sexton, R.J. (2012). Competition in U.S. Farm Product Markets: Do Long-Run Incentives Trump Short-Run Market Power? Applied Economic Perspectives and Policy, 34 (4), 669-695. (Crossref)

De Fátima Oliviera, M., da Silva Carvalho, M.L., Lucas, M.R., Henriques, P.D. (2015). Price Transmission in the Milk Portuguese Market. Agricultural Economics Review, 16 (1), 35-46.

Elzinga, K.G., Hogarty, T.F. (1973). The Problem of Geographic Market Delineation in Antimerger Suits. Antitrust Bulletin, 18, 45-81. (Crossref)

Elzinga, K.G., Hogarty, T.F. (1978). The Problem of Geographic Market Delineation Revisited: The Case of Coal. Antitrust Bulletin, 23, 2-19. (Crossref)

Gaynor, M.S., Kleiner, S.A., Vogt, W.B. (2013). A Structural Approach to Market Definition with an Application to the Hospital Industry. The Journal of Industrial Economics, 61 (2), 243-289. (Crossref)

Gil, J.M., Angulo, A.M., Zapata, H.O. (2000). Further Empirical Evidence of Wheat and Barley Market Integration in the EU. Journal of International Food & Agribusiness Marketing, 11 (2), 45-61. (Crossref)

Graubner, M., Balmann, A., Sexton, R.J. (2011). Spatial Pricing and the Location of Processors in Agricultural Markets. Paper prepared for presentation at the EAAE 2011 Congress, Zurich, 30.08-02.09.2011.

Hamulczuk, M., Stańko, S. (2009). Ekonomiczne skutki likwidacji kwot mlecznych w Unii Europejskiej - wyniki symulacji z wykorzystaniem modelu agmemod. Zagadnienia Ekonomiki Rolnej, 4, 3-20.

Hotelling, H. (1929). Stability in Competition. The Economic Journal, 39 (153), 41-57. (Crossref)

Jha, A.K., Singh, K.M., Singh, R.K.P. (2012). Market Integration in Wholesale Milk Markets in India. Social Science Research Metwork. Working Paper. http://dx.doi.org/10.2139/ssrn.2062821 (Crossref)

Kabbiri, R., Dora, M., Elepu, G., Gellynck, X. (2016). A Global Perspective of Food Market Integration: A Review. Agricultural Economics Research, Policy and Practice in Southern Africa, 55 (1-2), 62-80. (Crossref)

Katrakilidis, C. (2008). Testing for Market Integration and the Law of One Price: an Application to Selected European Milk Markets. International Journal of Economic Research, 5 (1), 93-104.

Kostic, M. (2014). Testing the Boundaries of the Relevant Market in the Competition Policy. Economic Horizons, 16 (1), 31-44. (Crossref)

Krugman, P. (1991). Increasing Returns and Economic Geography. Journal of Political Economy, 3 (99), 483-499. (Crossref)

Lösch, A. (1978). The Economics of Location. Yale University Press, New Haven.

Marshall, A. (1920). Principles of Economics. Reprinted in 2011 by ThaiSunset Publications.

Massey, P. (2000). Market Definition and Market Power in Competition Analysis: Some Practical Issues. The Economic and Social Review, 31 (4), 309-328.

Ottaviano, G., Tabuchi, T., Thisse, J.F. (2002). Agglomeration and Trade Revisited. International Economic Review, 43 (2), 409-435. (Crossref)

Pietrzak, M. (2014). Problem geograficznego zakresu rynków/ sektorów w dobie globalizacji i regionalizacji. Zagadnienia Ekonomiki Rolnej, 338 (1), 3-21.

Pietrzak, M., Mucha, M. (2015). Delimitacja rynku na przykładzie sektora cukrowniczego. Zagadnienia Ekonomiki Rolnej, 342 (1), 120-141. (Crossref)

Pietrzak, M., Roman, M., Mucha, M. (2016a). Określanie zasięgu geograficznego rynku cukru z wykorzystaniem metody Elzinga-Hogarty. Zagadnienia Ekonomiki Rolnej, 346 (1), 22-40. (Crossref)

Pietrzak, M., Roman, M., Mucha, M. (2016b). Zmiany we wspólnej organizacji rynku cukru a jego zasięg geograficzny. Zeszyty Naukowe Szkoły Głównej Gospodarstwa Wiejskiego w Warszawie, Problemy Rolnictwa Światowego, 16 (2), 258-268.

Png, I., Lehman, D. (2007). Manageria Economics. Blackwell Publishing Limited, Malden.

Porter, M.E. (1998). Clusters and the New Economics of Competition. Harvard Business Review, 76 (6), 77-90.

Rogers, R.T., Sexton, R.J. (1994). Assessing the Importance of Oligopsony Power in Agricultural Markets. American Journal of Agricultural Economics, 76 (5), 1143-1150. (Crossref)

Russo, C., Goodhue, R.E., Sexton, R. (2011). Agricultural Support Policies in Imperfectly Competitive Markets: Why Market Power Matters in Policy Design. American Journal of Agricultural Economics, 93 (5), 1328- -1340. (Crossref)

Roman, M. (2016). Zastosowanie metody E-H do określenia zasięgu geograficznego rynku masła. Roczniki Naukowe Stowarzyszenia Ekonomistów Rolnictwa i Agrobiznesu, 18 (3), 298-302.

Roman, M. (2017). Powiązanie cen masła między rynkiem polskim a wybranymi rynkami krajów Unii Europejskiej. Roczniki Naukowe Stowarzyszenia Ekonomistów Rolnictwa i Agrobiznesu, 19 (4), 169-174.

Salop, S.C. (1979). Monopolistic competition with outside goods. In: The Bell Journal of Economics, 10 (1), 141-156. (Crossref)

Scherer, F.M. (1970). Industrial Market Structure and Economic Performance. Rand McNally College Publishing Company, Chicago.

Serra, T., Godowin, B.K. (2010). Price transmission and asymmetric adjustment in the Spanish dairy sector. Applied Economics, 35 (18), 1889-1899. (Crossref)

Sexton, R.J. (1990). Imperfect Competition in Agricultural Markets and the Role of Cooperatives: A Spatial Analysis. American Journal of Agricultural Economics, 72 (3), 709-720. (Crossref)

Sexton, R.J. (2000). Industrialization and Consolidation in the U.S. Food Sector: Implications for Competition and Welfare. American Journal of Agricultural Economics, 82 (5), 1087-1104. (Crossref)

Sexton, R.J. (2013). Market Power, Misconceptions, and Modern Agricultural Markets. American Journal of Agricultural Economics, 95 (2), 209-219. (Crossref)

Sexton, R.J., Sheldon, I., McCorriston, S., Wang, H. (2003). Analyzing Vertical Market Structure and Its Implications for Trade Liberalization and Market Access. International Agricultural Trade Research Consortium, Working Paper 03-8.

Sexton, R.J., Zhang, M. (2001). An Assessment of the Impact of Food Industry Market Power on U.S. Consumers. Agribusiness, 17 (1), 59-79. (Crossref)

Sleuwaegen, L. (1999). Competitive distortions and state aid to firms. How to define the relevant market? Retrieved from: http://ec.europa.eu/DocsRoom/documents/2652 [accessed: 11.12.2014].

Stigler, G.J. (1983). The Economists and the Problem of Monopoly. University of Chicago Law Occasional Paper, 19, 1-22.

Sraffa, P. (1926). The Laws of Returns under Competitive Conditions. The Economic Journal, 36 (144), 535-550. (Crossref)

Tirole, J. (1988). The Theory of Industrial Organization. The MIT Press, Cambridge, MA.

Wårell, L. (2005). Defining Geographic Coal Markets Using Price Data and Shipments Data. Energy Policy, 33 (17), 2216-2230. (Crossref)

Wårell, L. (2007). Market Integration and Merger Assessments in the Mineral Industries. Doctoral thesis, Luleå University of Technology, Luleå.

Werden, G.J., Froeb, L. (1993). Correaltion, Casuality and All that Jazz: The Inherent Shortcomings of Price Tests for Antitrust Market Delineation. Review of Industrial Organization, 8, 329-353. (Crossref)

Yip, G.S. (2002). Total Global Strategy II. Pearson Education, Prentice Hall, Upper Saddle River, NJ.

Zanias, G.P. (1993). Testing for Integration in European Community Agricultural Product Markets, 44 (3), 418-427. (Crossref)

Statistics

Downloads

Download data is not yet available.