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Testing for Market Power and Functioning of the Spanish Seafood Supply Chain

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  • Traditionally, little attention was paid to the market and how the different levels of the market chain interact. However, recent price developments and the increase in the retail chains’ market share have raised awareness on the food supply chain and possible market power situations in Europe. This paper uses 2004-2009 weekly data to analyse the price transmission elasticity of the main 14 seafood products in the main 3 stages (Ex-vessel, Wholesale and Retail) of the Spanish market chain. We then investigate the price transmission asymmetries in these market stages and the presence of market power in the Spanish seafood market. Spain is one of the largest seafood markets in Europe and the world; for instance, around 39 kg per capita were consumed in 2007. The results obtained have significant implications for analysing demand, market power and margins in the seafood supply chain.
  • Keywords: Fisheries Economics, Markets and Trade, Supply and Value Chains
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  • Guillen, Jordi. 2010. Testing for Market Power and Functioning of the Spanish Seafood Supply Chain. 12 pages. In: Proceedings of the Fifteenth Biennial Conference of the International Institute of Fisheries Economics & Trade, July 13-16, 2010, Montpellier, France: Economics of Fish Resources and Aquatic Ecosystems: Balancing Uses, Balancing Costs. Compiled by Ann L. Shriver. International Institute of Fisheries Economics & Trade, Corvallis, Oregon, USA, 2010.
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  • US National Oceanic and Atmospheric Administration (NOAA) Fisheries Division, Agence Française de Développement, Ministère de l’Enseignement Supérieur et de la Recherche, Ministère de L’Alimentation de L’Agriculture et de la Pêche, Ministère de l’Énergie, du Développement Durable et de la Mer, La Région Languedoc Rouslilon, Département Hérault, Montpellier Agglomèration, The Department of Fisheries and Oceans, Canada, and AquaFish Collaborative Research Support Program (CRSP).
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