{"title":"Market power in smart farming and the distribution of gains in two-stage crop production system","authors":"Lana Awada, Peter W. B. Phillips","doi":"10.1002/jaa2.89","DOIUrl":null,"url":null,"abstract":"<p>In smart farming, agricultural technology providers (ATPs) wield market power in both the upstream (data collection/aggregation) and downstream (crop production) markets. Using a two-stage Muth model, this study assesses benefit distribution from ATPs' data-driven services in smart farming. Results show limited farmer returns from data sharing, questioning policymakers' data value focus. While data-driven services offer notable benefits, ATPs capture a significant share due to market power. Addressing ATP market power promotes equitable rent distribution, but perfect competition risks ATPs' sustainability and R&D incentives, presenting a policy challenge for smart farming outcomes.</p>","PeriodicalId":93789,"journal":{"name":"Journal of the Agricultural and Applied Economics Association","volume":"2 4","pages":"753-768"},"PeriodicalIF":0.0000,"publicationDate":"2023-11-20","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"https://onlinelibrary.wiley.com/doi/epdf/10.1002/jaa2.89","citationCount":"0","resultStr":null,"platform":"Semanticscholar","paperid":null,"PeriodicalName":"Journal of the Agricultural and Applied Economics Association","FirstCategoryId":"1085","ListUrlMain":"https://onlinelibrary.wiley.com/doi/10.1002/jaa2.89","RegionNum":0,"RegionCategory":null,"ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":null,"EPubDate":"","PubModel":"","JCR":"","JCRName":"","Score":null,"Total":0}
引用次数: 0
Abstract
In smart farming, agricultural technology providers (ATPs) wield market power in both the upstream (data collection/aggregation) and downstream (crop production) markets. Using a two-stage Muth model, this study assesses benefit distribution from ATPs' data-driven services in smart farming. Results show limited farmer returns from data sharing, questioning policymakers' data value focus. While data-driven services offer notable benefits, ATPs capture a significant share due to market power. Addressing ATP market power promotes equitable rent distribution, but perfect competition risks ATPs' sustainability and R&D incentives, presenting a policy challenge for smart farming outcomes.
在智能农业中，农业技术提供商（ATPs）在上游（数据收集/汇总）和下游（作物生产）市场都拥有市场支配力。本研究采用两阶段 Muth 模型，评估了智能农业中农业技术提供商数据驱动服务的收益分配情况。结果显示，农民从数据共享中获得的回报有限，这对政策制定者关注数据价值提出了质疑。虽然数据驱动的服务能带来显著收益，但由于市场力量，ATP 占有很大份额。解决 ATP 的市场支配力问题可促进公平的租金分配，但完全竞争会危及 ATP 的可持续性和研发动力，从而对智能农业成果提出政策挑战。
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