Market Power of Genetically Modified Soybeans Traded Between the United States and Korea

Eun-Ae Son,Song Soo Lim 한국무역학회 2019 Journal of Korea trade Vol.23 No.6

Purpose - The purpose of this study was to investigate market power of soybeans exported by the United States to Korea. Particularly, this paper considered dichotomous characteristics of genetically modified (GM) soybeans and non-GM soybeans and conducted empirical analysis of these two segregated soybean markets to understand key tenets of market power in international soybean trade. Design/methodology - The difference in market power between GM and non-GM soybeans was analyzed using Residual Demand Elasticity (RDE) and Residual Supply Elasticity (RSE) models over the period of 2008~2018. RDE and RSE models under an imperfect competition condition were used to estimate market margins and determine whether GM and non-GM exporters or importers exercised market power in the destination market. Findings - Empirical results suggested that the U.S. had a market power on both GM and non-GM soybean exports. GM exports had greater market power than non-GM exports (14% vs. 9%). By contrast, Korea showed an inability to grab market margin or exert market power in soybean imports. Both export supply by the U.S. and import demand by Korea were found to be more responsive to price changes of GM soybeans than to prices changes of non-GM soybeans. This might be due to a self-interested, profit-seeking strategy by the exporter and many concerned consumers regarding potential adverse effects of GMOs in the importing country. Originality/value - This paper fills the literature gap by exploiting market power in both GM and non-GM markets with explicit consideration of price correlations between GM and non-GM soybeans in Korea. A number of existing studies have provided evidence for market power broadly embedded in international commodity trade. However, studies focusing on Korean markets are limited. No study has explored the country’s soybean trade. Furthermore, the majority of prior studies have almost exclusively focused on the market power from a standpoint of exporting countries without discussing importers’ market structure. This paper also sought to understand potentially distinguished patterns of market power between GM and non-GM markets.

논문 : 기업의 제품시장에서의 독점력과 자본구조간의 관계

신민식 ( Minshik Shin ),이재익 ( Jaeik Lee ) 명지대학교 금융지식연구소 2016 금융지식연구 Vol.14 No.1

본 연구에서는 2000년 1월 1일부터 2013년 12월 31일까지 한국거래소의 유가증권시장에 상장된 기업을 대상으로 제품시장에서의 독점력과 자본구조간의 관계를 실증분석 하였다. 기업의 제품시장에서의 독점력에 관한 대용변수는 많은 선행연구에 따라 Tobin-q로 측정하였으며, 중요한 분석 결과는 다음과 같다. 기업의 제품시장에서의 독점력은 자본구조에 3차 함수 형태로 영향을 미친다. 이러한 결과는 제품시장에서 기업의 독점력이 낮은 수준에서는 부채를 증가시키고, 중간 수준에서는 부채를 감소시키며, 높은 수준에서는 부채를 다시 증가시킴을 의미한다. 따라서 제품시장에서 기업의 독점력이 낮은 수준에서는 유한책임 가설이 지지되고, 중간 수준에서는 약탈 가설이 지지되며, 높은 수준에서는 다시 유한책임 가설이 지지된다. 그리고 산업의 유형에 따라 기업의 제품시장에서의 독점력이 자본구조에 미치는 영향이 다르다. 9개 주요 산업 중에서, 음식료, 섬유의복, 화학, 기계, 전기전자, 의료정밀, 운수장비 등 7개 산업은 기업의 제품시장에서의 독점력이 자본구조에 3차 함수 형태로 영향을 미친다. 나아가, 정태적 자본구조뿐만 아니라 동태적 자본구조 하에서도, 기업의 제품시장에서의 독점력이 자본구조에 3차 함수 형태로 영향을 미친다. 이러한 결과는 정태적 자본구조뿐만 아니라 동태적 자본구조 하에서도, 제품시장에서 기업의 독점력이 낮은 수준에서는 부채를 증가시키고, 중간 수준에서는 부채를 감소시키며, 높은 수준에서는 부채를 다시 증가시킴을 의미한다. 그리고 기업규모와 성장기회 수준에 따라, 기업의 제품시장에서의 독점력이 자본구조에 미치는 영향이 다르다. 소기업은 대기업보다 제품시장에서의 독점력이 자본구조에 미치는 영향이 더 크고, 저-성장 기업이 고-성장 기업보다 더 크다. 결론적으로, 기업의 제품시장에서의 독점력은 자본구조에 대체로 3차 함수 형태로 영향을 미친다. 산업의 유형별로 차이가 있으나 대체로 기업의 제품시장에서의 독점력은 자본구조에 3차 함수 형태로 영향을 미친다. 그리고 기업규모가 작을수록, 성장기회가 낮을수록 제품시장에서의 독점력이 자본구조에 미치는 영향이 더 크다. 이러한 결과는 기업의 제품시장에서의 독점력이 자본구조에 영향을 미칠 수 있는 새로운 변수라는 점을 인정하여 자본구조 정책을 수립할 필요가 있음을 시사한다. This study analyzes empirically the relationships of monopoly power in product market and capital structure of firms listed on Korea Exchange from 2000 to 2013. The sample firms are classified into subsample, according to firm size and growth classifications. This study uses Tobin’s q as a proxy variable for degree of monopoly power in product market. The main results of this study can be summarized as follows. Monopoly power in production market and capital structure, as measured by Tobin’s q and leverage ratio, respectively, are shown to have a cubic relation[+Q_{t-1};-Q_{t-1}^{2}`;+Q_{t-1}^{3}], due to the complex interaction of market conditions, agency problems and bankruptcy costs. This result means that Tobin’s q and leverage are positively linked at low and high level of Tobin’s q but this relation is negative at medium level of Tobin’s q. In other words, leverage is increased at low and high level of monopoly power, but it is reduced when the monopoly power is at medium level. This results suggest that at low and high level of monopoly power, the positive relation between Tobin’s q and leverage supports the limited liability hypothesis, but at medium level of monopoly power, the negative relation between Tobin’s q and leverage supports the predation hypothesis. The relationships between monopoly power in production market and capital structure varies across industries. Among the 9 main industries, for the food, clothes, chemical, machine, electronics, medical and transportation industry, the relations between monopoly power in production market and capital structure are shown to have a cubic relation[+Q_{t-1};-Q_{t-1}^{2}`;+Q_{t-1}^{3}]. Moreover, in the framework of dynamic capital structure, monopoly power in production market and capital structure are shown to have a cubic relation. In this framework, it is assumed that firms adjust their capital structure through time. This study classifies the sample firms into subsample according to firm size and growth classifications. According to the firm size classifications, it seems that monopoly power in product market is not pivotal in capital structure of the relatively large firms. On the other hand, there appears to be a cubic relation for small firms. Moreover, according to the growth classifications, for the firms with low growth opportunities, the cubic relation is again detected. In conclusion, there appears to be a cubic relations between monopoly power in production market and capital structure in the static and dynamic frameworks. There are also significant differences in the relations depending on firm size and growth opportunities. Therefore, this study implies that managers must have to consider the monopoly power in production market as a new determinant of capital structure. This study may have a few limitations because it may be an only early study about the relationships between monopoly power in product market and capital structure of firms listed on Korea Exchange. Therefore, we think that it is necessary to expand sample firms and control variables, and use more elaborate analysis methods in future studies.

우리나라 전력시장에서의 시장지배력 행사

김현실 ( Hyun Shil Kim ),안남성 ( Nam Sung Ahn ) 한국시스템다이내믹스학회 2005 한국시스템다이내믹스 연구 Vol.6 No.1

Although the generation market is competitive, the power market is easily exercised the market power by one generator due to its special futures such as a limited supplier, large investment cost, transmission constraints and loss. Specially, as Korea Electric industry restructuring is similar US competitive wholesale electricity market structure which discovered the several evidences of market power abuse, when restructuring is completed the possibility that market power will be exercised is big. Market power interferes with market competitions and efficiency of system. The goal of this study is to investigate the market price effects of the potential market power and the proposed market power mitigation strategy in Korean market using the forecasting wholesale electricity market model. This modeling is developed based on the system dynamics approach. it can analyze the dynamic behaviors of wholesale prices in Korean market. And then it is expanded to include the effect of market condition changed by "strategic behavior" and "real time pricing." This model can generate the overall insights regarding the dynamic impact of output withholding by old gas fire power plant known as a marginal plant in Korean market at the macro level. Also it will give the energy planner the opportunity to create different scenarios for the future for deregulated wholesales market in Korea.

한국 전력산업의 중국 진출 전략에 관한 연구 : 한국전력공사, 한국지역난방공사를 중심으로

권태순;강재식 경희대학교 산업관계연구소 2009 産硏論叢 Vol.34 No.-

The power industry is the driving force of national economy activities and it not only accounts for high portion, but it is a highly value-added integrated technology industry: therefore, it has raised Korea's foreign competitiveness and has been developed as a growth motive power industry. Korea electric power industry has dramatically developed over past 40 years and it has excellent human resources, technology and pluralistic power facilities internally and externally equal with advanced power corporation and it holds world-class technology in the field of thermal power generation and nuclear power generation. Recently, Korean power industry is predicted to be a slowdown in growth and the competitiveness is getting fierce due to the private power contractors's entry to the market. In addition, the circumstances for power industry because of the reduction duty of greenhouse gas emission according to the Climatic Change Convention and the instability of supply and demand from security competition of energy resource is getting worse. However, the power industry's entry into the international market is becoming the necessary situation: for example, CDM industry where additional income is expected in addition to the alternative of nuclear power generation due to the instability of oil prices and world-wide trend of new and renewable energy. The purpose of China power industry's entry corresponds with that of Korea power industry in the necessary circumstance of new power facilities construction according to the rapidly economic growth. Especially, China power market is getting larger and is expected to raise high benefits as the arena of competition and it has many opportunities because of the inducement strategy and monopolistic environment. However, the benefits has been canceled according to the foreign power generation and there are a lot of weakness such as difficult environment change-the multi-change of strategy and the complexities of entry procedure and the opacity of investigation- and vulnerable awareness of Korean public companies such as Korea electric power industry, the insufficient information about China power market, the technical insufficiency of new and renewable energy. Korea power industry entry to China market has been activated after the early-mid 1990s, bilateral ties between Korean and China when the limited business such as technology cooperation, technological consultive service had been performed. However, the cogeneration power business of Qinhuangdao in Hebei has been started by Korea District Heating Corporation in 1997 and it has entered China focused on wind power business in Neimenggu and Gansu and connected business of power and resources in Shanxi. Therefore, this study has analyzed the cases of Korea district heating corporation and the strategy has been established through SWOT analysis of the advantages of Korean public corporation, the internal environment as weakness, opportunity factors of China power market and external environment as a threatening factor so that it can get effective results by promoting the entry to China power market. First, the intensification of entry to the fields such as China nuclear power, water power and new and renewable energy Second, the cooperative entry strategy with Korean private company based on Korea Electric Power Corporation, the best public one in the field of power. Third, the intensification of optimum financing such as projecting financing and financial package of Export-Import Bank of Korea. Fourth, the manage intensification of nation and business risk in case of entry to China market Fifth, the intensification of professionals for China expert cultivation. Sixth, the strategy of Korean standard power plants for the penetration of China nuclear power Seventh, the establishment of government support system for diplomatic channel intensification depending on the diversification of risks, financing and political influence of China government according to the public corporation's entry to the power market. Lastly, the information collection like the demand and the trend of competitors for the penetration of China power market and the intensification of network management for the connections with China government and companies. 우리나라 전력산업은 지난 40년간 비약적인 성장을 하였으며, 대내외적으로 선진전력회사와 대등한 수준으로 우수한 인적자원과 기술력, 다원화된 전력설비를 보유하고 특히 화력 및 원자력발전 분야에 있어서는 세계적인 기술력을 갖추고 있다. 최근 국내 전력산업은 전력수요의 성장둔화 추세가 예측되고 민간발전사업자의 시장참여로 인한 경쟁은 더욱 심화되고 있으며, 여기에 기후변화협약에 따른 온실가스 배출감축의무, 각국의 에너지자원 확보경쟁에 따른 에너지 수급불안정 등 전력산업 환경은 점점 악화되고 있는 실정이다. 그러나 국제유가의 불안정에 따른 원자력발전 대체와 신재생에너지의 세계적인 추세 외에 부가적인 수입이 예상되는 CDM사업 등 전력시장에도 해외진출은 시대적 흐름과 기업의 성장, 생존을 위한 필연적 상황이 되고 있다. 중국의 전력시장은 개혁․개방 이래 급속한 경제성장으로 전력산업도 이에 따라 대규모 신규 발전설비의 건설이 불가피한 상황으로 우리가 적극적으로 진출하려는 목적과 서로 부합되는데, 특히 중국 전력시장은 세계 선진전력회사의 각축장이라고 할 만큼 규모가 커고 전력부문에 대한 해외유치정책으로 진출기회도 많고 독점적 환경으로 인한 높은 수익도 기대할 수 있으나, 외국전력 유치에 따른 혜택이 축소되고 정책의 다변화 및 진출절차의 복잡성, 심사과정의 불투명성 등 중국 내 어려운 환경변화와 한국전력공사 등 국내 전력회사의 낮은 인지도, 중국 전력시장의 정보부족, 신재생에너지 기술력 미비 등 많은 취약점도 가지고 있다. 한국전력산업의 중국시장 진출은 한․중 수교가 이루어진 후인 1990년대 중반으로 초기에는 기술협력, 기술 자문용역 등 제한된 사업을 하였으나, 1997년 최초로 한국지역난방공사의 허베이성 친황다오열병합발전사업을 시작으로 2003년 한국전력공사의 허난성 우즈열병합발전사업, 내이멍구와 깐쑤성 풍력발전사업 및 샨시성 발전․자원 연계사업 등 화력과 풍력발전사업 위주로 진출하고 있다. 진출초기의 사업타당성 검토부족과 중국 내의 전력시장 환경변화에 대한 대처미비 등 어려움이 많았으나, 그 동안 해외에서 축적한 경험과 국제경쟁력 확보를 바탕으로 중국 전력시장에서의 수익성 창출, 세계적인 기업으로의 성장기회, 국내 민간기업과의 공동 진출을 통한 위험회피 및 시너지 효과를 기대할 수 있다. 따라서 이러한 취약점을 극복하고, 중국 전력산업의 현황과 환경변화를 고찰하고 기 진출한 외국 전력회사 및 한국전력공사, 한국지역난방공사의 사례를 분석한 뒤, SWOT분석을 통한 전략방안을 제시하여 중국 전력시장에 진출하고자 하는 연구이다.

Proposing a New Method for Calculating Reactive Power Service Charges using the Reactive Power Market

Ro, Kyoung-Soo,Park, Sung-Jin The Korean Institute of Electrical Engineers 2004 KIEE International Transactions on Power Engineeri Vol.a4 No.4

With the advent of electric power systems moving from a vertically integrated structure to a deregulated environment, calculating reactive power service charges has become a new and challenging theme for market operators. This paper examines various methods for reactive power management adopted throughout various deregulated foreign and domestic markets and then proposes an innovative method to calculate reactive power service charges using a reactive power market in a wholesale electricity market. The reactive power market is operated based on bids from the generating sources and it settles on uniform prices by running the reactive OPF programs of the day-ahead electricity market. The proposed method takes into account recovering not only the costs of installed capacity but also the lost opportunity costs incurred by reducing active power output to increase reactive power production. Based on the result of the reactive OPF program, the generators that produce reactive power within the obligatory range do not make payments whereas the generators producing reactive power beyond the obligatory range receive compensation by the price determined in the market. A numerical sample study is carried out to illustrate the processes and appropriateness of the proposed method.

우리나라 전력산업의 시장지배력 연구

조성한 ( Sung Han Jo ),김강식 ( Kang Sik Kim ) 한독경상학회 2012 經商論叢 Vol.30 No.4

국내 발전시장은 발전경쟁 단계로서 한수원, 5개 발전회사, 기타 발전회사들이 참여하고 있으며 모든 전력이 전력거래소에서 거래되고 있다. 2003년부터 2011년까지 실질경제성장율은 평균 3.8%인 반면 같은 기간 동안 최대전력수요는 평균 5.3% 증가하였다. 한편 전력 총판매량은 2003년에 293,599GWh와 2011년 455,070 GWh로 2003년부터 2011년까지 평균 5.6% 증가하였다. 또한 판매단가는 2003년에 74.7원/kWh과 2011년은 89.3원/kWh으로 2003년부터 2011년까지평균 2.1%만이 증가하였다. 한수원의 점유율이 평균 36.75%로 나타나고 있으며 5개 발전회사의 점유율은 평균 10%대를 보여주고 있다. 2003년 1월부터 2011년 9월까지의 자료를 사용하여 발전시장의 구조와 성과를 살펴보았다. 발전시장의 집중률은 평균 61.94%를 기록하고 있으며, 허핀달지수는 평균 0.2072%를 나타내고 있다. 지니계수의 조사기간 평균은 37.30%이며 지니계수는 점차 감소하는 경향을 보여 주고있다. 발전시장의 매출총이익은 평균 18.89원이며, 시간이 지나감에 따라 감소하는 경향을 보이고 있다. 발전시장의 매출총이익율은 평균 34.69%이며, 시간이 지나감에 따라 감소하는 경향을 보이고 있다. 모형에서 추정된 결과로는 이윤율과 집중률과의 관계는 유의적인 정(+)의 관계가 추정되었다. 집중률의 추정계수는 2.2302로 1% 수준에서 유의하며 정(+)의 관계를 가진다. 즉 집중률이 1% 상승(하락)할 때에 매출총이익율이 각각 2.2302%씩 증가(감소)한다는 것을 보여준다. 이는발전시장에 시장지배력이 존재함을 보여주고 있는 것이며 이윤율은 집중율이 상승함에 따라 증가함을 보여주고 있다. 이는 시장지배력의 완화와 공정한 경쟁환경 조성을 위한 규제체계 정비가 시급함을 시사하고있다. 한수원의 시장점유율을 낮출 수 있는 방안을 마련하고 구조개편의 최종목표인 소매경쟁단계로의 전환을 위해서는 발전시장 내의 회사들의 규모가 비슷하게 유지될 수 있도록 해야한다. 또한 시장메커니즘이 작동할 수 있도록 시장진입 등 전력산업에 대한 관련 규제의 완화가 필요하다. 그리고 전력시장에서의 반경쟁적 행위나 불공정거래행위 등을 감시할 수 있는 시장감시체제가 제대로 작동해야 한다. In the process of electricity industry restructuring, the Korean electricity market has been in operation at a generation competition stage. There are one nuclear company, 5 generating companies, and IPPs in the market. They are competing each other by the cost-based pool rules and selling all electricity to the Korea Power Exchange (KPX). From 2003 to 2011, the average real economic growth rate was 3.8% but the average growth rae of the maximum electric power demand was 5.3% in the same period. The power sales of 2003 and 2011 was 293,599GWh and 455,070GWh respectively, and the average growth rate of power sales was 5.6% from 2003 to 2011. And the average unit sale price of power was 74.7won/kWh in 2003 and 89.3won/kWh in 2011, and the average unit sale price was increasing by 2.1% only from 2003 to 2011. This paper tackles an empirical analysis about market performance and market structure using the Korean generation market data from January 2003 to September 2011. Market concentration rate(C3) is about 61.94%, and Herfindahl index shows around 0.2072 in the generation market. The nuclear company alone represents on average 36.75%. The Gini coefficient, which is the recognised measure of inequality, was 37.30% and was declining over time. The average gross margin on sale of power was 18.89won and was declining over time. The average gross margin ratio on sale of power was 34.69% and was also declining over time. It is estimated that there is a strong positive relationship between market concentration rate and profitability. The coefficient of concentration ratio is 2.2302 and is positive and statistically significant at the level of 1 percent. It implies that as market concentration rate increases, the profitability of generation companies improves. In order to make electricity market more competitive and mature, decreasing the nuclear company`s concentration rate, maintaining the size of 5 generating companies, and lowering market entry barrier are needed. Besides, the functions and duties of KOREC(regulator) for the wholesale power market should be readdressed in the context of deregulation and fair competition.

외식기업의 시장력과 성과의 영향 관계 연구

김기영(Ki Young Kim),김민경(Min Kyung Kim) 한국관광연구학회 2013 관광연구저널 Vol.27 No.5

The hypotheses of this study were investigated with the following results: First, higher market power meant higher degree of achieving superiority and overcoming inferiority. The result shows that the interval and market power recognized by the size, technological level, and corporate image of a company, are very important factors in reducing and overcoming threats to late-movers. Second, among types of competition strategies of food service enterprises, the degree of securing opportunities for market entry effect, superiority, and overcoming inferiority had positive effect on business performance, while threats had no effect. This result implies that the level of threats to late movers as they enter the market later than fast movers is less influential than opportunities and degree of achieving superiority and inferiority. Therefore, threats can be offset and performance improved by taking advantage of opportunities given to late movers. Third, according to the research on how the market power of the food service company affects the company`s business performance, it was learned that the stronger the market power, the greater the performance. Therefore, late movers will need to improve technology, corporate image, and reputation to ensure market power. Based on the findings, the study came up with implications as follows. First, the market power of the food service company was proved to be a factor that affects opportunity factor, threat factor, dominant position realization degree and inferiority overcome degree of the company in the market. Second, the market power was observed to be a very much significant factor to improve the company`s competitiveness in the market. The market power would include everything of a company from a size to technology level, images and reputation and as long as this market power works with high-quality products, the power shall be a strong strategy for the company when it tries to enter the market.

전력시장에서의 공정거래법 집행에 관한 연구 -EU 경쟁법 집행사례의 시사점을 중심으로-

이호영 ( Ho Young Lee ),오성은 ( Seong Eun Oh ) 한국경쟁법학회 2013 競爭法硏究 Vol.27 No.-

Electricity is an essential for everyday human lives and it is a fundamental mission of a modern nation to ensure stable and reliable supply of electricity on reasonable price. However, the electric power industry of Korea is suffering from chronicle shortages of supply and soaring wholesale price of electric power and securing stable electric power supply and an efficient electricity market has emerged again as a major national agenda. The electric power industry of Korea had been monopolized by the vertically integrated state-run Korea Electric Power Corporation (KEPCO) for decades. In early 2000`s, the Korean Government, affected by the international trend toward liberalization of and introduction of competition to electric power industries, launched restructuring of the industry in order to establish a competitive electricity market on both wholesale and retail level. However, the restructuring came to a deadlock after KEPCO`s electricity generation unit had been split into six subsidiaries. Incomplete introduction of competition and lack of adequate competition law enforcement in the Korean electric power industry resulted in very unstable and inefficient electric power markets. For establishing an efficient and reliable electric power market, the reform of the electric power market should be fully accomplished and rigorous competition law enforcement in the market should follow. In light of the European experience of competition policy initiatives and competition law enforcement in the energy sector, competition law enforcement in the Korean electric power market should focus upon preventing abuses of market dominance such as capacity withdrawals by market dominant generators and long-term electricity supply contracts which have effect of foreclosing new entrants from newly opened electricity market. Depending on the network unbundling model chosen through the reform process, securing third party access to the networks on fair and nondiscriminatory terms is another key issue which competition law enforcement in electric power markets should pay attention to.

소규모 재생발전사업자의 중개시장참여 촉진요인 분석

이드미트리,배정환 한국신·재생에너지학회 2022 신재생에너지 Vol.18 No.3

Rapid spread of intermittent renewable energy has amplified the instability and uncertainty of power systems. The Korea Power Exchange (KPX) promoted efficient management by opening the power brokerage market in 2019. By combining small-scale intermittent renewable energy with a flexible facility through the power brokerage market, the KPX aims to develop a virtual power plant system that will allow the conversion of existing intermittent renewable energy into collective power plants. However, the participation rate of renewable power owners in the power brokerage market is relatively low because other markets such as the small solar power contract market or the Korea Electric Power Corporation power purchase agreement are more profitable. In this study, we used a choice experiment to determine the attributes affecting the participation rate in the power brokerage market for 113 renewable power owners and estimate the value of the power brokerage market. According to the estimation results, a low smart meter installation cost, low profit variations, long contract periods, and few clearances increased the probability of participation. Moreover, the average value of the power brokerage market was estimated to be 2.63 million KRW per power owner.

가락동 도매시장 농산물 판매주체의 시장지배력 분석

김두한 ( Doo Han Kim ),김상기 ( Sang Gee Kim ) 한국농업경제학회 2003 農業經濟硏究 Vol.44 No.1

N/A There is a general consensus that, compared with food marketing firms, farmers have inferior market and bargaining power. The purpose of this paper is to analyze the identity of the current market power of major sales bodies which sell their apple in Garak-dong wholesale market in Korea. It was found out that the `type Ⅲ(agricultural cooperatives)` enjoys the highest selling loyalty and both `type Ⅱ(joint selling bodies)` and `type Ⅲ` are competed with each other for the retention of market shares in wholesale market. The steady-state probabilities for three sales bodies are already arrived in long run equilibrium state. Though the mark-up(MU) for all sales types by multinomial logit model are estimated insignificant statistically, while the Lerner index meaning market power for `type Ⅲ` representing agricultural cooperatives sales is relatively higher than the other two types. The results of this study suggest that under the situation of the rapidly changing marketing environment of the agricultural products the point places great emphasis on the acceleration of the specialization in marketing business of the agricultural cooperatives in order to enhance the market power of the agricultural producers.