Further Evidence on Competition in the US Grain Export Trade

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This study analyzes the relationship between export market structure and the pricing behavior of US grain exporting firms. A generalized Cournot model is estimated by two-stage least squares using pooled data sets for US wheat and corn exports. The cross-sectional units correspond to foreign country destinations. Discriminatory export pricing behavior was found to be significantly related to export seller concentration, US market share, total export volume, and import market size. Yet, the estimated coefficients linking these market structure variables to the export price markup were relatively small in magnitude, suggesting little quantitative impact from market power.