Applied Economics Teaching Resources

an AAEA Journal

Agricultural and Applied Economics Association

Case Study

Price-Fixing in the U.S. Broiler Chicken and Pork Industries

Yuliya V. Bolotova
Iowa State University

JEL Codes: L1, L2, L4, L66, Q13
Keywords: Broilers, oligopoly, pork, price-fixing, Sherman Act

Publish Date: May 26, 2022
Volume 4, Issue 4

View Full Article (PDF) | Request Teaching Notes/Supplemental Materials

Abstract

The motivations for this case study are recent developments in the U.S. broiler chicken and pork industries involving implementation of agricultural supply control practices by the largest broiler and pork processors in the United States. Buyers of broilers and pork filed antitrust lawsuits alleging that by implementing these supply control practices broiler and pork processors engaged in unlawful price-fixing conspiracies. The case study introduces economic, business, and legal issues related to implementation of supply control practices in the U.S. broiler chicken and pork industries. The case study presents economic models that help explain the conduct and performance of these industries in the analyzed setting, and it includes a basic market and price analysis. The intended audiences are undergraduate and graduate students, as well as extension and outreach communities. The teaching note includes multiple-choice questions and suggested answers to analytical, discussion, and multiple-choice questions. The teaching note also discusses teaching objectives, teaching strategies, and student background knowledge.

About the Authors: Yuliya V. Bolotova is an Assistant Teaching Professor in the Department of Economics at Iowa State University (Corresponding author: yuliya@iastate.edu). Acknowledgements: The author acknowledges constructive comments provided by the AETR Editor, Jason Bergtold, and anonymous reviewers. The research presented in this case study originated when the author worked as an Assistant Professor at Clemson University.

Copyright is governed under Creative Commons CC BY-NC-SA

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Court Documents and Relevant Webpages

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