Artikel
When switching costs cause market power: Rubber processing in Indonesia
Suppliers of agricultural output incur switching costs (SCs) when choosing new buyers, allowing buyers to exercise oligopsonistic market power, as SCs help buyers to mark down prices for incumbent suppliers. This article conceptualizes the idea of SCs and suggests an empirical strategy for quantifying them through an estimation of farm supply to specific buyers. The model incorporates price differences between buyers, revealing buyers' anticipations of suppliers' SCs. The approach is applied to the Indonesian rubber market, employing a data set of daily purchasing prices and less frequent quantities of individual sales instances. Results indicate that SCs exist and are at about 3% of the farm gate price, leading to substantial redistribution from suppliers to buyers of agricultural output.
- Sprache
-
Englisch
- Erschienen in
-
Journal: Agricultural Economics ; ISSN: 1574-0862 ; Volume: 53 ; Year: 2021 ; Issue: 3 ; Pages: 481-495 ; Hoboken, USA: Wiley Periodicals, Inc.
- Klassifikation
-
Wirtschaft
- Thema
-
Bertrand paradox
law of one price
oligopsony
rubber
switching costs
value chain analysis
- Ereignis
-
Geistige Schöpfung
- (wer)
-
Kopp, Thomas
- Ereignis
-
Veröffentlichung
- (wer)
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Wiley Periodicals, Inc.
- (wo)
-
Hoboken, USA
- (wann)
-
2021
- DOI
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doi:10.1111/agec.12690
- Handle
- Letzte Aktualisierung
-
10.03.2025, 11:44 MEZ
Datenpartner
ZBW - Deutsche Zentralbibliothek für Wirtschaftswissenschaften - Leibniz-Informationszentrum Wirtschaft. Bei Fragen zum Objekt wenden Sie sich bitte an den Datenpartner.
Objekttyp
- Artikel
Beteiligte
- Kopp, Thomas
- Wiley Periodicals, Inc.
Entstanden
- 2021
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