ABSTRACT
Empirical studies of the world wheat market have generally assumed that a neoclassical competitive model can adequately describe trading behavior (i.e. Rojko, et al., (1978); Schmitz and Bawden (1973); Takayama and Judge (1971). Such models assume, at least implicitly, that no country exercises market power in trade, even though they are modelling situations where market power potentially exists. Several researchers have challenged this assumption by proposing models of imperfect competition as alternatives: McCalla (1966, 1970); Taplin (1968); Alaouze, Watson and Sturgess (1978); and Carter and Schmitz (1979).
