Welfare Effects of Trade Associations: The Case of the Chilean Salmon Export Industry
Abstract
ABSTRACT This article examines the welfare consequences of a trade association in an exporting country on consumers in destination countries. We estimate a structural model of the Chilean Salmon exporting industry that endogenizes firms' pricing and export decisions. Our results show that the trade association has a positive effect on consumer utility and involves higher marginal costs of production, consistent with higher quality products. Reduced form analysis estimates price effects associated with trade association membership of 3 to 8 percent. Our counterfactual analysis reveals that eliminating the trade association would reduce consumer welfare by 1.7 billion USD in destination countries.
Fields of Study & Subjects
Economics of Agriculture and Food Markets
Cooperative Studies and Economics
Livestock and Poultry Management
Publication details
- Journal / source
- The RAND Journal of Economics
- Publisher
- Wiley
- Volume
- 57
- Issue
- 3
- Pages
- 745–763
- Publication date
- 25 June 2026
- Language
- EN