A Spatial Equilibrium Model Introduced Oligopolistic Processors Making Several Processed Goods

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  • Kubo Kenji
    Laboratory of Food Industrial System Analysis, Division of Industrial Organization of Agribusiness, Department of Agricultural and Resource Economics, Graduate School of Bioresource and Bioenvironmental Sciences, Kyushu University
  • Kano Hideyuki
    Laboratory of Food Industrial System Analysis, Division of Industrial Organization of Agribusiness, Department of Agricultural and Resource Economics, Faculty of Agriculture, Kyushu University
  • Maeda Koshi
    Laboratory of Food Industrial System Analysis, Division of Industrial Organization of Agribusiness, Department of Agricultural and Resource Economics, Faculty of Agriculture, Kyushu University

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Other Title
  • 複数財の寡占的加工業者を含む空間均衡モデル
  • フクスウザイ ノ カセンテキ カコウギョウシャ オ フクム クウカン キンコウ モデル

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Abstract

Kubo, Kano and Maeda (2008) which is based on the work of Kawaguchi (2003) developed a spatial equilibrium model, incorporating oligopolistic processing firms. The oligopolistic processing firms are characterized as the firm which can hold a great control over their products' Prices against the producers in raw material market and the consumers in processed goods market. In this paper, we revise the spatial equilibrium model of Kubo, Kano and Maeda (2008) by considering oligopolistic processing firms which make some processed goods from a raw material. Also, analyses simulations with the use of the model are performed under the four scenarios, 1) a perfectly competitive in both raw material market and processed goods market, 2) supply-oligopolistic in processed goods market, 3) demand-oligopolistic in raw material market, 4) both supply-oligopolistic in processed goods market and demand-oligopolistic in raw material market. As a result, the following facts are yielded: oligopolistic processing firms in this study beat the Price down in raw material market and push up the Price in processed goods, which are more profitable than Price-takers.

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