Market Power Factors Analysis of Vegetable Supply Chain Actors: A Case Study in Tehran

Document Type : Research Paper

Authors

• mohammad reza nazari ¹
• milad aminizade ²
• seyed ali darijani ³
• seyed mehdi mir ⁴

¹ Assistant Professor of Agricultural Economics, Shahid Beheshti University

² PhD student in Agricultural Economics, Ferdowsi University of Mashhad

³ Department of Economic Engineering and Agricultural Production Management, Faculty of Agriculture, Payame Noor University

⁴ PhD student in Agricultural Economics, University of Tehran

10.30495/jae.2022.22788.2074

Abstract

Vegetables are an important part of the food basket of Iranian households. The purpose of this study is to analyze the market power and identify the behavior of supply chain actors in selected vegetable products. For this purpose, the weekly data of selected vegetable products in Tehran in the period 1390-95 were analyzed. The experimental findings of the study include two main results. First, there is competition between the two levels of wholesale and retail, and the market power of wholesalers in the distribution chain of perishable products such as vegetables is greater than that of retailers. Second, the structure of the vegetable market is different and the reaction of supply chain actors to price changes in each loop is not the same in all products. Therefore, it is suggested that in leading policies, the market power of wholesalers in the vegetable distribution chain, as well as the differences in market structure and the role of each of the chain actors and the type of their reaction to changes in each product, should be considered.

Keywords

• Market structure
• marketing circles
• price
• Tehran

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