Market power and the volatility of markups in the food value chain: The role of Italian cooperatives
Agricultural cooperatives have often been promoted as a way to increase their market power and to obtain stability of profit against uncertainty. This paper estimates the firm-level markups and markup volatility to identify the countervailing market power of cooperatives in the Italian fruits and ve...
| Main Authors: | , , |
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| Format: | Artículo preliminar |
| Language: | Inglés |
| Published: |
LICOS Centre for Institutions and Economic Performance
2021
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| Subjects: | |
| Online Access: | https://hdl.handle.net/10568/143664 |
| _version_ | 1855534082742550528 |
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| author | Lee, Hyejin Swinnen, Johan Van Cayseele, Patrick |
| author_browse | Lee, Hyejin Swinnen, Johan Van Cayseele, Patrick |
| author_facet | Lee, Hyejin Swinnen, Johan Van Cayseele, Patrick |
| author_sort | Lee, Hyejin |
| collection | Repository of Agricultural Research Outputs (CGSpace) |
| description | Agricultural cooperatives have often been promoted as a way to increase their market power and to obtain stability of profit against uncertainty. This paper estimates the firm-level markups and markup volatility to identify the countervailing market power of cooperatives in the Italian fruits and vegetable sector and the dairy sector. We use the firm-level data of Italian firms for the period 2007-2014. We find that, overall, there is a tradeoff in cooperatives’ role between obtaining market power and stability. Farmer cooperatives in both sectors gain stability in their markups but their markups are lower, on average, than those for non-cooperatives. For processor cooperatives, the fruits and vegetable sector obtains more market power. This appears to arise from the product differentiation strategy of the processors cooperative. |
| format | Artículo preliminar |
| id | CGSpace143664 |
| institution | CGIAR Consortium |
| language | Inglés |
| publishDate | 2021 |
| publishDateRange | 2021 |
| publishDateSort | 2021 |
| publisher | LICOS Centre for Institutions and Economic Performance |
| publisherStr | LICOS Centre for Institutions and Economic Performance |
| record_format | dspace |
| spelling | CGSpace1436642025-12-08T10:11:39Z Market power and the volatility of markups in the food value chain: The role of Italian cooperatives Lee, Hyejin Swinnen, Johan Van Cayseele, Patrick value chains volatility market capacity cooperatives agricultural cooperatives prices Agricultural cooperatives have often been promoted as a way to increase their market power and to obtain stability of profit against uncertainty. This paper estimates the firm-level markups and markup volatility to identify the countervailing market power of cooperatives in the Italian fruits and vegetable sector and the dairy sector. We use the firm-level data of Italian firms for the period 2007-2014. We find that, overall, there is a tradeoff in cooperatives’ role between obtaining market power and stability. Farmer cooperatives in both sectors gain stability in their markups but their markups are lower, on average, than those for non-cooperatives. For processor cooperatives, the fruits and vegetable sector obtains more market power. This appears to arise from the product differentiation strategy of the processors cooperative. 2021-05-24 2024-05-22T12:15:53Z 2024-05-22T12:15:53Z Working Paper https://hdl.handle.net/10568/143664 en Open Access LICOS Centre for Institutions and Economic Performance Lee, Hyejin; Swinnen, Johan; and Van Cayseele, Patrick. 2021. Market power and the volatility of markups in the food value chain: The role of Italian cooperatives. LICOS Discussion Paper Series 424/2021. Leuven, Belgium: LICOS Centre for Institutions and Economic Performance. https://feb.kuleuven.be/drc/licos/publications/dp/dp424 |
| spellingShingle | value chains volatility market capacity cooperatives agricultural cooperatives prices Lee, Hyejin Swinnen, Johan Van Cayseele, Patrick Market power and the volatility of markups in the food value chain: The role of Italian cooperatives |
| title | Market power and the volatility of markups in the food value chain: The role of Italian cooperatives |
| title_full | Market power and the volatility of markups in the food value chain: The role of Italian cooperatives |
| title_fullStr | Market power and the volatility of markups in the food value chain: The role of Italian cooperatives |
| title_full_unstemmed | Market power and the volatility of markups in the food value chain: The role of Italian cooperatives |
| title_short | Market power and the volatility of markups in the food value chain: The role of Italian cooperatives |
| title_sort | market power and the volatility of markups in the food value chain the role of italian cooperatives |
| topic | value chains volatility market capacity cooperatives agricultural cooperatives prices |
| url | https://hdl.handle.net/10568/143664 |
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