[OPE] US wheat market - perfectly competitive?

From: Anders Ekeland <anders.ekeland@online.no>
Date: Mon Dec 13 2010 - 13:57:44 EST

In many text-books the wheat market is used as an example of markets
close to perfect competition, but without any scientific references -
as if this was an obvious fact.

I need for polemical use articles that show that wheat production in
US (or Canada or Australia) is not done for a perf.comp market. The
key issue is if farmers are passive price takers or makers - or that
other regulating bodies intervene to establish socially sustainable
prices. The emergence and role of subsidies is also of great interest.

There are many articles on the international market for wheat in an
imperfect competition perspective or strategic trade policy
perspective and indirectly they confirm my non-perfect market
hypothesis for example by the very existence of Australian and
Canadian Board of Wheat, previously controlling the domestic wheat
markets are clear indications that these markets where "free" - but
that they had to be regulated in order to reduce the social costs of
"free" market (wildly fluctuating) prices in the 20's and 30's. Is
there any paralel institution in the US to these Wheat boards?

All hints are welcome.

Anders Ekeland

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Received on Mon Dec 13 14:02:27 2010

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