Oligopolistic differentiation of the Colombiangreen bean coffee in the US market

Ecos de Economía: A Latin American Journal of Applied Economics

Andrés Julián Rendón Cardona¹ 

[1] Escuela de Economía y Finanzas, Centro de Investigaciones Económicas y Financieras (CIEF), Universidad EAFIT

关键词: International Trade;    Oligopoly and Imperfect Markets;   

DOI  :  

学科分类：社会科学、人文和艺术（综合）

来源: Universidad Eafit

【 摘 要 】

New Empirical Industrial Organization (NEIO) literature notes that imperfect foreign competition among commodities may be characterized by prices, quantities and product differentiation. This paper shows that the effectiveness of the differentiation strategy of Colombian green bean coffee in the US market has caused Colombia to compete in terms of quantities with its major opponent, Brazil. In order to show it, this paper brings a set of models which allow us to identify the competitive structure followed by Brazil and Colombia in the United States market of green bean coffee imports. These models are evaluated through a likelihood ratio test to determine which of them best explains the data. Stackelberg is the best model showing Brazil’s leadership in terms of quantities .

【 授权许可】

Unknown