Journal of Rural Development
Measuring Contestability of Korean and Japanese Imported Beef Markets
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AuthorChoi, Yejun
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Publication Date2024.06.20
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Original
This study analyzes the competitiveness and market power dynamics in the Korean and Japanese imported beef markets using an extended menu approach and the rivalry index method. By re-evaluating these markets with a Bayesian estimation procedure, the research addresses limitations of previous studies. Findings reveal that the quantity cartel model best fits the South Korean market, while the price cartel model suits the Japanese market. Despite structural model indications of potential cartel behavior, the rivalry index shows no significant collusion between US and Australian beef exporters. This absence of collusive behavior is attributed to the market’s nature, characterized by multiple exporters in both countries. The presence of numerous exporters makes unified strategies for competition or collusion challenging, even with support from organizations like US Meat Export Federation (USMEF) and Australian Meat and Livestock Corporation (MLA).
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