For citation:
Andreev A. V., Fadeeva N. P. Methodological Approach to the Analysis of the Competitive Environment in the Dairy Industry on the Basis of the Model of Price Elasticity of Supply. Journal Izvestiya of Saratov University. Economics. Management. Law, 2017, vol. 17, iss. 1, pp. 69-75. DOI: 10.18500/1994-2540-2017-17-1-69-75
Methodological Approach to the Analysis of the Competitive Environment in the Dairy Industry on the Basis of the Model of Price Elasticity of Supply
Introduction. The methods of analysis of price elasticity of supply for the regulation of the competitive environment on the market of raw milk. Empirical analysis. The state of competition on the market of raw milk is characterized by the fact that in most cases the producer acts on it in the role of a price taker. This external condition creates a situation in which prices of milk sales are a derived quantity from the purchase prices offered by the buyers-processors. From here stems the need for the application to assess the state of competition along with the structural approach, at approach, allowing to identify how the sale price motivates farmers to increase the volume of supply of milk. This approach can be used to identify procurement areas of dominant buyers, processors the facts of the establishment of monopoly low prices and price discrimination. Discussion results. The study was determined for inelastic proposals the thresholds at which the realisation price is an important factor in stimulating the growth of volume of supply of milk.
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