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Journal of Agricultural & Food Industrial Organization

Ed. by Azzam, Azzeddine

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Testing for Oligopsony Power in the US Green Skin Avocado Market

Edward Evans / Fredy H. Ballen
Published Online: 2016-03-26 | DOI: https://doi.org/10.1515/jafio-2015-0014


The United States is the main destination for Dominican Republic (DR) green skin avocado exports accounting for over 70 % of the total DR green skin avocado exports from 2004 to 2013. Given the US dominant position in the US-DR green skin avocado trade, the United States may have an incentive to deviate from the competitive markets model, and behave as an oligopsonist. The present study seeks to assess potential oligopsonistic behavior in the US green skin avocado import market. A residual supply model was specified and estimated. Findings indicate that despite its dominant position in the world avocado trade, there is no empirical evidence that indicates that the United States exercises market power over DR exports of green skin avocados.

Keywords: green skin avocados; oligopoly; industrial organization; residual supply


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About the article

Published Online: 2016-03-26

Published in Print: 2016-01-01

Citation Information: Journal of Agricultural & Food Industrial Organization, Volume 14, Issue 1, Pages 43–50, ISSN (Online) 1542-0485, ISSN (Print) 2194-5896, DOI: https://doi.org/10.1515/jafio-2015-0014.

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