Re: [OPE] Asunto: US wheat market - perfectly competitive?

From: Allin Cottrell <>
Date: Thu Dec 16 2010 - 20:12:02 EST

On Fri, 17 Dec 2010, Anders Ekeland wrote:

> I do not think there is a real-life example [of perfect
> competition], but let me quote from Samuelson and Nordhaus
> text-book, 2010:
> "... What is meant by perfect competition? It is a technical
> term that refers to a market in which no firm or consumer is
> large enough to affect the market price. For example, the wheat
> market is perfectly competitive because the largest wheat farm,
> producing only a minuscule fraction of the world's wheat, can
> have no appreciable effect upon the price of wheat." (p. 35)

There is a somewhat dated but workman-like and empirically
informed analysis of the wheat market at

Allin Cottrell

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Received on Thu Dec 16 20:13:32 2010

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