The pricing behavior comparison of Canada and Australia exporter in wheat international market using Pricing to Market (PTM) and Residual Demand Elasticity (RDE)

International Conference on Agriculture, Environment, and Food Security

农业科学;生态环境科学

Wibowo, R.P.^1 ; Sumono^1 ; Iddrisu, Y.^2 ; Darus, M.^1 ; Sihombing, L.P.^1 ; Jufri^1

Department of Agribusiness, Faculty of Agriculture, Universitas Sumatera Utara, Indonesia^1

CSIR-Council for Scientific and Industrial Research, SARI, Ghana^2

关键词: Behavior comparisons;    Econometric model;    International markets;    Market Power;    Price discrimination;    Pricing to markets;    Residual demand;    Theoretical modeling;   

Others  :  https://iopscience.iop.org/article/10.1088/1755-1315/122/1/012012/pdf
DOI  :  10.1088/1755-1315/122/1/012012

来源: IOP

【 摘 要 】

This paper try to identify and examined the degree of market power on wheat international market by 2 major exporting countries comprising Canada and Australia by using the Pricing to Market (PTM) method and Residual Demand Elasticity (RDE) method. The PTM method found that Canada impose noncompetitive strategy by applying price discrimination and apply market power to their importing. Different results come from Australian exporter as they are not using their market power to the importing. Conflicting result arise from estimation using RDE and PTM method suggest that the need to extend the theoretical model of both model by expand its economic and econometric model to have consistent expected result theoretically and empirically.