Disease Risk and Market Structure in Salmon Aquaculture
EfD Authors:
We develop a model of a multi-national firm producing commodities for a global market in multiple locations with location-specific risks and different regulatory standards. Salmon aquaculture and disease outbreaks provide an empirically relevant example. We specifically examine details of the infectious salmon anemia outbreak in Chile in the late 2000s, the multi-national nature of some firms operating in Chile, and the overall market structure of the salmon farming industry as motivation for our theoretical model.