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Noncompetitive Pricing and Exchange Rate Pass-Through in Selected U.S. and Thai Rice Markets

Published online by Cambridge University Press:  28 April 2015

K. K. Yumkella ,
L. J. Unnevehr  and
P. Garcia
K. K. Yumkella
Affiliation:
Michigan State University
L. J. Unnevehr
Affiliation:
Environmental and Health Risk Branch, Economic Research Service, USDA
P. Garcia
Affiliation:
University of Illinois at Urbana-Champaign
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Abstract

A “pricing to market” international trade model is applied to U.S. and Thai rice exports to high and middle income countries that are continuous rice importers. These markets are characterized by strong quality preferences and highly inelastic demand, and thus exporters may exercise market power. Evidence of noncompetitive pricing either through price discrimination across destinations or through imperfect exchange rate pass-through is found in this small but growing segment of the international rice trade.

Keywords

exchange ratesimperfect competitioninternational traderice
Type
Articles
Information
Journal of Agricultural and Applied Economics , Volume 26 , Issue 2 , December 1994 , pp. 406 - 416
Copyright
Copyright © Southern Agricultural Economics Association 1994

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