Imperfect Competition between Florida and Sao Paulo (Brazil) Orange Juice Producers in the U.S. and European Markets
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We develop a strategic trade model to analyze the oligopolistic competition between Florida and
São Paulo processors in the U.S. orange juice market and São Paulo processors in the European
orange juice market. We obtain analytical results of the effects of changes in trade liberalization.
A structural econometric model is derived from the theoretical model, and the new empirical
industrial organization literature is used to estimate the market power of Florida and São Paulo
producers. We simulate the effects of U.S. and European tariff reductions on prices, quantities,
and trade volume