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Market power and rents in global supply chains
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Market power and rents in global supply chains

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  • Johan F.M. Swinnen
  • Anneleen Vandeplas

Abstract

Market power and competition policy in food supply chains has emerged as an important economic issue in economics, and a highly sensitive item on the policy agenda. Consolidation is taking place in the food industry, both in high‐income countries and in emerging economies, but the impact of concentration in global food chains on efficiency and rent distribution is more nuanced and complex than often claimed. We review the literature and extend it by developing a model which explicitly takes into account market imperfections and contract enforcement problems in supply chains. Increased competition benefits farms by improving contract conditions, but contract enforcement becomes more complicated.

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  • Johan F.M. Swinnen & Anneleen Vandeplas, 2010. "Market power and rents in global supply chains," Agricultural Economics, International Association of Agricultural Economists, vol. 41(s1), pages 109-120, November.
    • Handle: RePEc:bla:agecon:v:41:y:2010:i:s1:p:109-120
    DOI: 10.1111/j.1574-0862.2010.00493.x
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