초록 |
This paper investigates the mechanism that world market price influences domestic producer price under both competitive and oligopolistic market. This paper shows that foreign agricultural products can be imported even when world market price is higher than domestic price and the marketing costs for imports are larger than those for domestic products, if domestic buyers exercise market power when they procure agricultural products. Simulation results in this paper indicates that the larger marketing costs for domestics products relative to the imports results in the more decrease in the domestic producer price.
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