A dominant firm model of price determination in the US fresh salmon market: 1985—88

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Abstract
In this paper, a dominant firm pricing model is used to examine price determination in the US imported farmed salmon market for the period 1985–88. In the 1980s, US imports of fresh and frozen salmon increased rapidly, with Norway supplying nearly 80% of farmed salmon. The model assumes that Norwegian suppliers recognize their dominant position in the market and set the level of supply to the US to achieve a price that will maximize profits. The model does well in explaining variations in the price of farmed salmon over the period of study and is used to study recent allegations that Norwegian salmon have been dumped in the US market.

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