| This essay studies the effect of higher concentration of US broiler industry on social welfare and effect of productivity and demand-specific factors on plants' probability of survival, ownership change and firms' probability of expansion. My results show that producer surplus increased when concentration increased, and decreased when centration decreased; consumer welfare increased as a result of lower price; and social welfare changed in the same direction as producer surplus. My results also show that higher demand-specific factors will increase the probability of survival, probability of ownership change and probability of expansion. The effect of productivity is generally not significant. |
