Market Power in International Commodity Trade : The Case of Coffee

This paper studies the impact of market power on international commodity prices. I use a standard oligopoly model and exploit historical variations in the structure of the international coffee bean market to assess the impact of a cartel treaty on coffee prices and its global welfare consequences. The results suggest the International Coffee Agreement (ICA, 1965-89) raised its price by 75% above the Cournot-competitive level, annually transferring approximately $12 billion from consumers to exporting countries, and its lapse in 1989 explains four-fifths of the subsequent price decline, that is, the "coffee crisis."

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Year of publication:	2015
Authors:	Igami, Mitsuru
Publisher:	[2015]: [S.l.] : SSRN
Subject:	Kaffeemarkt \| Coffee market \| Kaffee \| Coffee \| Welt \| World \| Marktmacht \| Market power \| Oligopol \| Oligopoly \| Kaffeepreis \| Coffee price

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Extent:	1 Online-Ressource (36 p)
Type of publication:	Book / Working Paper
Language:	English
Notes:	In: Journal of Industrial Economics, Forthcoming Nach Informationen von SSRN wurde die ursprüngliche Fassung des Dokuments February 26, 2014 erstellt
Other identifiers:	10.2139/ssrn.1531401 [DOI]
Classification:	D43 - Oligopoly and Other Forms of Market Imperfection ; F12 - Models of Trade with Imperfect Competition and Scale Economies ; F13 - Commercial Policy; Protection; Promotion; Trade Negotiations ; F14 - Country and Industry Studies of Trade ; F35 - Foreign Aid ; F51 - International Conflicts; Negotiations; Sanctions ; F53 - International Agreements and Observance; International Organizations ; G13 - Contingent Pricing; Futures Pricing ; L11 - Production, Pricing, and Market Structure Size; Size Distribution of Firms ; L13 - Oligopoly and Other Imperfect Markets ; L41 - Monopolization; Horizontal Anticompetitive Practices ; O13 - Agriculture; Natural Resources; Energy; Environment; Other Primary Products ; O16 - Financial Markets; Saving and Capital Investment ; O19 - International Linkages to Development; Role of International Organizations ; Q17 - Agriculture in International Trade
Source:	ECONIS - Online Catalogue of the ZBW

Persistent link: https://www.econbiz.de/10013039191