publication . Preprint . 1998

Estimation of Cost Pass Through to Michigan Consumers in the ADM Price Fixing Case

Cotterill, Ronald W.;
Open Access
  • Published: 01 Jan 1998
Abstract
This report analyzes the economic impact of price fixing in the wet corn milling industry on consumers in the State of Michigan. Two of the companies who produce citric acid have pleaded guilty to fixing its price. In this report we assume that price fixing also occurred among HFCS producers. Given the structure of the corn wet milling industry and the direct purchaser industries, the overcharge is essentially uniform across buyers and selling arrangements. We develop an actual economic model of price transmission based upon the three facts: 1) The overcharge as a percent of the processed product value at wholesale and at retail is small, 2) Fixed proportion tec...
Subjects
free text keywords: price fixing, overcharge, cost pass through, fixed proportion production technology, flexible demand specifications, competitive structure, Agribusiness, Crop Production/Industries, Demand and Price Analysis,
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publication . Preprint . 1998

Estimation of Cost Pass Through to Michigan Consumers in the ADM Price Fixing Case

Cotterill, Ronald W.;