Power imbalances in the Belgian sugar beet market: employing systems thinking for a supply chain analysis

According to the theory of Industrial Organization market power is determined by the structure of the market. From a particular structure, market agents’ conduct and performance can be inferred. This relationship is called the Structure-Conduct-Performance (SCP) paradigm. However, due to certain shortcomings, this paradigm is dismissed and substituted by the approach of the New Industrial Organization (NEIO). While the amendments of NEIO are valuable, this paper expands on the importance of structure for the occurrence of market power issues. Systems thinking emphasizes the relevance of struct... Mehr ...

Verfasser: Biely, Katharina
Van Passel, Steven
Dokumenttyp: conferenceObject
Erscheinungsdatum: 2018
Schlagwörter: systems thinking / causal loop diagrams / market power / supply chain / agrifood chain / sugar beet
Sprache: Englisch
Permalink: https://search.fid-benelux.de/Record/base-28879415
Datenquelle: BASE; Originalkatalog
Powered By: BASE
Link(s) : http://hdl.handle.net/1942/26648

According to the theory of Industrial Organization market power is determined by the structure of the market. From a particular structure, market agents’ conduct and performance can be inferred. This relationship is called the Structure-Conduct-Performance (SCP) paradigm. However, due to certain shortcomings, this paradigm is dismissed and substituted by the approach of the New Industrial Organization (NEIO). While the amendments of NEIO are valuable, this paper expands on the importance of structure for the occurrence of market power issues. Systems thinking emphasizes the relevance of structure for the conduct of the whole system and the agents within the system. Thus, systems thinking can be a valuable tool to understand the emergence of market power. With the example of the sugar beet case we demonstrate how systems thinking can support the identification of market power issues. The advantage of systems thinking is that it can be applied as ex-ante tool to policy changes. Moreover, market power may not be measurable in the sugar beet case due to price According to the theory of Industrial Organization market power is determined by the structure of the market. From a particular structure, market agents’ conduct and performance can be inferred. This relationship is called the Structure-Conduct-Performance (SCP) paradigm. However, due to certain shortcomings, this paradigm is dismissed and substituted by the approach of the New Industrial Organization (NEIO). While the amendments of NEIO are valuable, this paper expands on the importance of structure for the occurrence of market power issues. Systems thinking emphasizes the relevance of structure for the conduct of the whole system and the agents within the system. Thus, systems thinking can be a valuable tool to understand the emergence of market power. With the example of the sugar beet case we demonstrate how systems thinking can support the identification of market power issues. The advantage of systems thinking is that it can be applied as ex-ante tool to ...