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Food and Nutrition EconomicsFundamentals for Health Sciences$
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George C. Davis and Elena L. Serrano

Print publication date: 2016

Print ISBN-13: 9780199379118

Published to Oxford Scholarship Online: November 2017

DOI: 10.1093/oso/9780199379118.001.0001

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Horizontally and Vertically Related Competitive Markets

Horizontally and Vertically Related Competitive Markets

(p.209) 15 Horizontally and Vertically Related Competitive Markets
Food and Nutrition Economics

George C. Davis

Elena L. Serrano

Oxford University Press

Chapter 15 demonstrates how markets may be interrelated. The chapter defines horizontally and vertically related markets and provides the steps to follow in analyzing those markets. The chapter demonstrates and discuss the implications a horizontally related market analysis would have for measuring the effect of a sugar sweetened beverage tax as has been found in the literature. The chapter then works through a hypothetical example of an increase in supply in an input market (the upstream market) and how this affects the output market (the downstream market) that is vertically related to the input market. This analysis is discussed in the context of research on the effects of US farm policy on corn prices and therefore the effects on downstream food markets and ultimately the contribution such policies make toward the obesity epidemic.

Keywords:   horizontally related markets, vertically related markets, derived demand, final demand

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