Imperfect Competition between Florida and Sao Paulo (Brazil) Orange Juice Producers in the US and European Markets

We develop a strategic trade model to analyze the oligopolistic competition between Florida and Sao Paulo processors in the U.S. orange juice market and Sao 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 Sao Paulo producers. We simulate the effects of U.S. and European tariff reductions on prices, quantities, and trade volume.