题目：Bargaining Structure and Policy Reform--A Case in the French Dairy Industry

主讲人：Jianyu YU, Toulouse School of Economics

Abstract

This article analyzes the link between policy reform and bargaining structures in the French dairy industry, where milk prices are decided through negotiation between associations of farmers and processors. Since the reform of Common Agricultural Policy, which gradually reduced the support prices of butter and skim milk powder, the bargaining structures and milk price scheme have changed. To investigate the reason, we develop a bargaining model that captures major dairy policies and the main characteristics of the different parties in the French dairy industry. We find that the processor association adopts milk price differentiation only if the support price is at an intermediate level. A support price which is either too high or too low will induce some processorsto separate from the association and forces the ssociation to choose a uniform milk price.