This paper proposes a new framework to include the interaction of vertically differentiated goods, which was largely ignored in previous studies, to analyze the market power of exporters and importers in world markets of agricultural commodities. The framework is applied in an empirical study of...

The EU banned U.S. poultry meat imports because it considers U.S. veterinary regulations unsatisfactory. We develop a model of the EU and world poultry markets. We find that the import ban causes a 2.44% increase and a 0.44% decrease in the EU and world price respectively.

Replaced with revised version of poster 07/21/11.