Interregional competition for eggs

An interregional competition model for the U.S. egg industry is developed. The model is used to examine the effect of a change in the marketing costs, due to proposed Salmonella, enteritidis (Se) regulations for eggs, on interregional egg markets. In addition, an increase in the demand for eggs is examined to see which production regions would benefit from increased production and prices. The quantity of eggs consumed is not sensitive to supply induced changes (such as the change in egg processing costs caused by potential Se regulations). In contrast, the quantity of eggs supplied is quite sensitive to demand induced changes according to those specified for the model.