Market structure and resilience: Evidence ...
Document type :
Compte-rendu et recension critique d'ouvrage
DOI :
Title :
Market structure and resilience: Evidence from potash mine disasters
Author(s) :
Gnutzmann, Hinnerk [Auteur]
Kowalewski, Oskar [Auteur]
Lille économie management - UMR 9221 [LEM]
Śpiewanowski, Piotr [Auteur]
Kowalewski, Oskar [Auteur]
Lille économie management - UMR 9221 [LEM]
Śpiewanowski, Piotr [Auteur]
Journal title :
American Journal of Agricultural Economics
Publisher :
Oxford University Press (OUP)
Publication date :
2019-08-16
ISSN :
0002-9092
HAL domain(s) :
Sciences de l'Homme et Société/Economies et finances
English abstract : [en]
What drives the resilience of markets to disasters? We study syndicates, a form of legal cartel that assigns market share based on production capacity. This creates incentives for excess capacity investment, and may insulate ...
Show more >What drives the resilience of markets to disasters? We study syndicates, a form of legal cartel that assigns market share based on production capacity. This creates incentives for excess capacity investment, and may insulate the market from the impact of extreme events. The potash industry, controlled by a syndicate and subject to mine disasters generating exogenous capacity shocks, provides an ideal setting for testing the hypothesis. We find evidence suggesting that even large capacity losses—averaging 3% of global capacity—do not cause production shortfalls or a price response. Such resilience is not observed in more competitive commodity markets.Show less >
Show more >What drives the resilience of markets to disasters? We study syndicates, a form of legal cartel that assigns market share based on production capacity. This creates incentives for excess capacity investment, and may insulate the market from the impact of extreme events. The potash industry, controlled by a syndicate and subject to mine disasters generating exogenous capacity shocks, provides an ideal setting for testing the hypothesis. We find evidence suggesting that even large capacity losses—averaging 3% of global capacity—do not cause production shortfalls or a price response. Such resilience is not observed in more competitive commodity markets.Show less >
Language :
Anglais
Popular science :
Non
Collections :
Source :