Indirect damages from price fixing: The Alabama lysine case

Indirect damages to broiler and pork producers from supra-competitive pricing of synthetic lysine, which is an important feed additive, are discussed in this article. Indirect damages occur in fundamentally different ways in the two industries because the broiler industry is vertically integrated while the pork industry was dominated by independent producers during the 1992-1995 time period. Pass-through of higher lysine prices to hog feed purchasers is demonstrated with regression analysis of purchases of a feed premix containing synthetic lysine and a regression analysis of purchases of synthetic lysine from feed dealers.

Duke Scholars

Author Curtis R. Taylor Economics