Oligopolistic differentiation of the Colombian green bean coffee in the US market
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Keywords
International Trade, Oligopoly and Imperfect Markets
Abstract
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.
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References
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Larry, K. & Perloff, J. (1993). A Dynamic Model of Oligopoly in the Coffee Export Market. American Journal of Agriculture Economics, 75, 448-457.
Lozano, N. (2002). La prima de Colombia en el café verde. Documento de Trabajo. Bogo¬tá, Colombia: Federación Nacional de Cafeteros de Colombia.
Palacio, M. & Safford, F. (2002). Colombia: país fragmentado, sociedad dividida. Su histo¬ria. Bogotá, Colombia: Norma.
Tirole, J. (1988). Teoría de la organización industrial. Barcelona, España: Ariel.
Carter, C. & MacLaren, D. (1997). Price or Quantity Competition? Oligopolistic Structures in International
Commodity Markets. Review of International Economics, 5(3), 373- 385.
Coloma, G. (2003, diciembre). Economía de la Organización Industrial. Buenos Aires, Ar¬gentina:
Federación Nacional de Cafeteros de Colombia(2005, abril). Evolución del modelo de ne¬gocios de la caficultura colombiana. Comisión para el estudio del sector cafetero. Documento interno de trabajo, Bogotá, Colombia: Federación Nacional de Cafeteros de Colombia.
Fraja, G. de & Staderini, A. (1996). An Empirical Analysis of Competition in Brand Differen¬ciated Oligopoly. International Journal or the Economics of Business, 3(1).
Giovannucci, D. et al. (2002, octubre). Colombian Coffee Sector Study. Documento CEDE.
Giovannucci, D.; Lewin, B. & Varangis, P. (2003). Coffee Markets. New Paradigms in Global Supply and Demand. Banco Mundial. Reporte de Agricultura y Desarrollo Rural. Manuscrito.
Junguito, R. & Pizano D. (1991). Producción de café en Colombia, vol. I. Bogotá, Colombia: Fondo Cultural Cafetero-Fedesarrollo.
Junguito, R. & Pizano D. (1991). Instituciones e instrumentos de la política cafetera en Colombia, vol. III. Bogotá, Colombia: Fondo Cultural Cafetero-Fedesarrollo.
Larry, K. & Perloff, J. (1993). A Dynamic Model of Oligopoly in the Coffee Export Market. American Journal of Agriculture Economics, 75, 448-457.
Lozano, N. (2002). La prima de Colombia en el café verde. Documento de Trabajo. Bogo¬tá, Colombia: Federación Nacional de Cafeteros de Colombia.
Palacio, M. & Safford, F. (2002). Colombia: país fragmentado, sociedad dividida. Su histo¬ria. Bogotá, Colombia: Norma.
Tirole, J. (1988). Teoría de la organización industrial. Barcelona, España: Ariel.
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Published
Jun 30, 2013
Article Details
How to Cite
Rendón Cardona, A. J. (2013). Oligopolistic differentiation of the Colombian green bean coffee in the US market. Ecos De Economía, 17(36), 99–125. https://doi.org/10.17230/ecos.2013.36.5
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