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Market Diversion and Market Power: California Eggs
Authors:William J Allender  Timothy J Richards
Institution:(1) Department of Economics, University of Venice, Italy;(2) Department of Economics, Trinity College, Dublin, Ireland;(3) Department of Economics, University College Dublin, Ireland
Abstract:Allegations of price-fixing by US egg producers maintain that the industry’s strategic use of export programs softens competition in the domestic market. This study provides an empirical investigation into these allegations using retail market data from a specific California retail market. Our findings suggest that the antitrust complaints have economic merit, but the deviations from competitive behavior are small.
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