An Analysis of U.S. Dairy Policy Deregulation using an Imperfect Competition Model

An imperfect competition model of the U.S. milk market is developed for analyzing the impacts of dairy policy deregulation. Estimated degree-of-competition parameters indicate that the U.S. milk market has become more competitive over time. The usefulness of the model is demonstrated by showing the relative differences of dynamic simulation results of the imperfect competition model with the results of a conventional exogenous fluid differential model.