Mike
Well-known member
From the Canada Bureau of Competition Analysis:
The conclusions from the analysis are as follows:
* While there is no appreciable monopsony market power exertion by beef packers in fed cattle markets, there is significant monopsony market power exertion in cull cattle markets.
* All market power parameter estimates are well below levels that would be consistent with collusion.
* Most likely, the post-event observed price patterns are likely the result of both shifts in demand (i.e., absence of US demand for live cattle) and changes in market power exertion. Modest market power exertion at multiple stages in the supply chain likely resulted in double-marginalization which compounds the effect on price. These results are consistent with model simulations.
It is important to note that Dr. Love's analysis relied on publically available data and, as a result, there were several quite important data availability constraints.
Isn't the "Cull Market" where Canada took such a big hit?
"Publicly available data"............ :lol: Quite an "AUDIT"!!! :roll: [/b]
The conclusions from the analysis are as follows:
* While there is no appreciable monopsony market power exertion by beef packers in fed cattle markets, there is significant monopsony market power exertion in cull cattle markets.
* All market power parameter estimates are well below levels that would be consistent with collusion.
* Most likely, the post-event observed price patterns are likely the result of both shifts in demand (i.e., absence of US demand for live cattle) and changes in market power exertion. Modest market power exertion at multiple stages in the supply chain likely resulted in double-marginalization which compounds the effect on price. These results are consistent with model simulations.
It is important to note that Dr. Love's analysis relied on publically available data and, as a result, there were several quite important data availability constraints.
Isn't the "Cull Market" where Canada took such a big hit?
"Publicly available data"............ :lol: Quite an "AUDIT"!!! :roll: [/b]