caa a22 4500 467896127 CHVBK 20180406152804.0 cr unu---uuuuu 170328e20060901xx s 000 0 eng 10.1007/s00181-005-0041-6 doi (NATIONALLICENCE)springer-10.1007/s00181-005-0041-6 Testing for the principal's monopsony power in agency contracts [Elektronische Daten] [Atsushi Inoue, Tomislav Vukina] We develop a test for the presence of the monopsony power of the livestock integrator (principal) on the market for contract growers (agents) and estimate the model with the data on swine industry contract settlements. A natural test for the monopsony power of the principal would compare the estimated values of the marginal revenue products with the actual payments that agents receive for their services. The problem with implementing this approach comes from the fact that agents' abilities and actions are unobservable. Our approach is based on estimating the slope of the inverse supply function for grower input using generalized method of moments (GMM) estimators. The model specifies the relationships between the observable consequences and unobservable grower characteristics imposing the first order conditions for principal's profit maximization. The results show that the null hypothesis of no market power cannot be rejected. Springer-Verlag, 2006 Oligopsony nationallicence Principal-agent model nationallicence Production contracts nationallicence Inoue Atsushi North Carolina State University, 27695-8109, Raleigh, NC, USA aut Vukina Tomislav North Carolina State University, 27695-8109, Raleigh, NC, USA aut Empirical Economics Physica-Verlag 31/3(2006-09-01), 717-734 0377-7332 31:3<717 2006 31 181 https://doi.org/10.1007/s00181-005-0041-6 text/html Onlinezugriff via DOI 1 research-article jats NATIONALLICENCE 856 40 https://doi.org/10.1007/s00181-005-0041-6 text/html Onlinezugriff via DOI NATIONALLICENCE 700 1- Inoue Atsushi North Carolina State University, 27695-8109, Raleigh, NC, USA aut NATIONALLICENCE 700 1- Vukina Tomislav North Carolina State University, 27695-8109, Raleigh, NC, USA aut NATIONALLICENCE 773 0- Empirical Economics Physica-Verlag 31/3(2006-09-01), 717-734 0377-7332 31:3<717 2006 31 181 Metadata rights reserved Springer special CC-BY-NC licence nationallicence BK010053 XK010053 XK010000 NATIONALLICENCE NATIONALLICENCE NL-springer