Abstract

TORRES-SANDOVAL, Clemente  and  GARCIA-SALAZAR, José A.. Application of a spatial equilibrium model to determine the bean market structure in Mexico. Agrociencia [online]. 2008, vol.42, n.6, pp.731-740. ISSN 2521-9766.

The importance of bean (Phaseolus vulgaris L.), relative to the number of growers and consumers, requires an analysis of imperfections in the market. To determine the dominant structure of the bean market in México, the values observed of consumer prices and consumption were compared with those obtained by solving a spatial equilibrium model adjusted with assumptions of perfect competition, oligopoly and monopoly. The results show that the average consumer price estimated by the model departs from the observed consumer price by -7.9%, -5.9%, and 68.2% in the structures of perfect competition, oligopoly, and monopoly, while observed consumption differs from estimated consumption by 4.0%, 3.4%, and -36.3% for the same structures. It is concluded that the bean market in México is governed by an oligopolistic structure.

Keywords : Perfect competition; oligopoly; monopoly; consumer price; consumption; adjusted net social payoff.