Screening for collusion in t he philippine chicken meat, chicken egg and pork markets

Abstract

© 2019, International Society for Southeast Asian Agricultural Sciences. All rights reserved. Since chicken meat, chicken egg and pork are regularly consumed by majority of the Filipino population, changes in the quantity supplied and retail prices significantly affect buyers. Protecting the welfare of the consumers and even producers by promoting free and fair competition is of utmost concern. Firms entering into anti-competitive agreements such as market collusion can hurt consumers because of the high prices they are being charged. The paper screened for possibility of market collusion in the Philippine markets of chicken meat, chicken egg and pork, by observing significant breaks in the prices of industry data. Piecewise regression analysis was performed on the nominal retail prices of chicken meat, chicken egg, and pork from 1990 to 2017. Findings revealed that the variations in the retail prices showed statistically significant shifts corresponding to critical events in the industry like entry, exit and mergers within the industry, as well as the acceleration of technical smuggling in the country. While the paper is limited only to the initial work of detecting market collusion, the paper recommends that further scrutiny by concerned agencies be done in order to verify and address the anti-competitive behavior of firms.

Source or Periodical Title

Journal of the International Society for Southeast Asian Agricultural Sciences

ISSN

8593132

Page

135-147

Document Type

Article

Subject

Cartels, Mergers and acquisition, Piecewise regression, Technical smuggling

This document is currently not available here.

Share

COinS