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Norwegian export of farmed salmon − trade costs and market concentration

Asche, Frank; Gaasland, Ivar; Straume, Hans-Martin; Vårdal, Erling
Journal article, Peer reviewed
Accepted version
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Available from 2020-06-14 (978.4Kb)
URI
http://hdl.handle.net/11250/2607473
Date
2019
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  • Publikasjoner fra CRIStin - BI [649]
  • Scientific articles [1334]
Original version
Applied Economics Letters. 2019, 1-6.   10.1080/13504851.2019.1610702
Abstract
While variation in unit value most commonly has been associated with quality in the trade literature, observed differences in prices between markets might also be explained by variation in market concentration and the degree of competition. Using transaction data on Norwegian exports of salmon, we introduce a Herfindahl index as a measure of competition in a standard gravity model. We find that competition typically is weaker in small and distant markets that due to high trade costs are served by relatively few firms. We argue that the anti-competitive impact of trade costs may explain price differentiation between markets even for homogeneous products.
Publisher
Taylor and Francis
Journal
Applied Economics Letters
Copyright
Taylor and Frances

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