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Full-Text Articles in Social and Behavioral Sciences
Testing The Monopsony-Inefficiency Incentive For Backward Integration, Azzeddine Azzam
Testing The Monopsony-Inefficiency Incentive For Backward Integration, Azzeddine Azzam
Azzeddine Azzam
In theory, monopsony at one stage in a vertically related market provides an incentive for backward integration into the adjacent competitive stages. By integrating backward, a monopsonist internalizes the monopsony inefficiency due to underemployment of the factor produced upstream. However, little is known about the importance of such incentive in practice. In this paper, the author provides an empirically implementable model to test the monopsony-inefficiency incentive for vertical integration. For illustration, the model is applied to the U.S. beef slaughter industry. Findings seem to support the monopsony-inefficiency incentive for backward integration by the industry into the live cattle market.
A Variational Inequality For Marketable Pollution Permits, Anna Nagurney, Kathy Dhanda
A Variational Inequality For Marketable Pollution Permits, Anna Nagurney, Kathy Dhanda
Kathy K Dhanda
No abstract provided.