First Extension: Introducing the Agricultural Sector Sample Clauses

First Extension: Introducing the Agricultural Sector. The original model of Goyal and Joshi (2006) assumes that firms play oligopolistic competition in the domestic and international markets. However, it omits an extremely important player who operates in the agricultural sector. This corresponds to the farming sector. In order to introduce this sector into the analysis, a parsimonious version of the food supply chain described by XxXxxxxxxxx (2002) was adopted. The food chain considered in this article is characterised by two main actors: farmers and intermediaries. Farmers in this case are assumed to be input and output price takers. On the other hand, it is assumed the existence of one intermediary in each country of the world who purchases the agricultural output produced by domestic farmers. Each intermediary is assumed to have monopsonistic power in the inter- phase farmers-intermediary and oligopolistic power in both the domestic and international markets of agricultural commodities. A scheme of this food chain description is presented in Figure 1.
Sample 1
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