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Measuring market power in the Greek food and beverages manufacturing industry AgEcon
Rezitis, Anthony N.; Kalantzi, Maria A..
This paper measures the degree of market power of the Greek food and beverages manufacturing industry over the period 1983–2007 at the three-digit SIC level. The present study also estimates the “deadweight” loss and the reduction of consumers’ income due to the possible existence of market power in the Greek food and beverages manufacturing industry. Based on Bresnahan’s (1989) conjectural variation model, three different approaches are used to investigate competitive conditions of the Greek food and beverages manufacturing industry. The first approach assesses the extent of market power of the whole industry over the period 1983–2007; the second approach tests the degree of market power in each one of the nine sectors of the industry over the whole...
Tipo: Conference Paper or Presentation Palavras-chave: Conjectural variation; Greek food and beverages manufacturing industry; Market power; Welfare losses; Agribusiness; D43; D60; L66; Q10.
Ano: 2011 URL: http://purl.umn.edu/114809
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Strategic Investment and Excess Capacity: A Study of the Taiwanese Flour Industry AgEcon
Ma, Tay-Cheng.
The Taiwanese flour industry’s capacity utilization rate has maintained an extremely low level of 40% for more than 20 years. This article sets up a two-stage game model and uses the strategic effect of the firm’s capital investment on its rivals’ outputs to explain the nature of this excess capacity. The model is tested with panel data from the Taiwanese flour industry by using non-linear three-stage least squares. The evidences indicate that a large capacity built in the past could have been used strategically to reduce other firms’ outputs, in the context of a concerted action among the incumbent firms.
Tipo: Journal Article Palavras-chave: Strategic investment; Two-stage game; Collusion; Conjectural variation; L13.
Ano: 2005 URL: http://purl.umn.edu/37516
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Retail Competition in the Milk Market in a U.S. Midwestern City AgEcon
Hovhannisyan, Vardges; Gould, Brian W..
The main goal of this manuscript is to explore the retailer conduct in the milk market in a U.S. Midwestern city, based upon a structural estimation of consumer milk demand and retailer optimality conditions. To model milk demand we rely upon the Almost Ideal Demand System, while allowing the retailer optimality conditions to cover a range of competitive scenarios from perfect competition to horizontal cartel. We employ a conjectural variation approach in the spirit of Newly Empirical Industrial Organization to study the competitive environment on the retail landscape. We find that the retail market in question is far from being competitive, with the two major retailers being engaged in an oligopolistic competition. Furthermore, the private label milk...
Tipo: Conference Paper or Presentation Palavras-chave: AIDS demand; Conjectural variation; Market power; Oligopolistic competition.; Demand and Price Analysis; Industrial Organization; D11; D12; D43; L13.
Ano: 2011 URL: http://purl.umn.edu/99281
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