Norwegian export of farmed salmon − trade costs and market concentration
Journal article, Peer reviewed
Accepted version
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Date
2019-04Metadata
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Original version
Asche, F., Gaasland, I., Straume, H.M. et al. (2019) Norwegian export of farmed salmon − trade costs and market concentration. Applied Economics Letters 10.1080/13504851.2019.1610702Abstract
While variation in unit value most commonly has been associated with quality in the trade literature, observed differences in prices between markets might also be explained by variation in market concentration and the degree of competition. Using transaction data on Norwegian exports of salmon, we introduce a Herfindahl index as a measure of competition in a standard gravity model. We find that competition typically is weaker in small and distant markets that due to high trade costs are served by relatively few firms. We argue that the anti-competitive impact of trade costs may explain price differentiation between markets even for homogeneous products.
Description
This is an Accepted Manuscript of an article published by Taylor & Francis in Applied Economics Letters on 24 April 2019, available online: https://www.tandfonline.com/doi/full/10.1080/13504851.2019.1610702.