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Investigation of the Determinants of Market Power on Czech Pork Meat Market

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  • Rudinskaya, T.

Abstract

An increasing market concentration in food retailing has generated concerns about the market power of retailers towards consumers and input suppliers. This is especially true for the Czech Republic, which has a CR5 in food retailing greater than 50%. Based on different indicators of food chain and pork meat market with respect to four groups of meat products with low and high value added it was analysed whether the evidence of market power in the Czech pork market exists. Analysis based on a New Empirical Industrial Organization model investigated the degree of market power of meat processing industry. The evidence of market power in meat processing industry is rather weak, although has increasing trend in the last year accompanying by growing market concentration ratio. However, the empirical results suggest that market power of retailing exists towards consumers and towards input suppliers (in particular, in the case of meat products with higher value added).

Suggested Citation

  • Rudinskaya, T., 2019. "Investigation of the Determinants of Market Power on Czech Pork Meat Market," AGRIS on-line Papers in Economics and Informatics, Czech University of Life Sciences Prague, Faculty of Economics and Management, vol. 11(2), June.
    • Handle: RePEc:ags:aolpei:294156
    DOI: 10.22004/ag.econ.294156
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    Cited by:

    1. Maximilian Koppenberg & Stefan Hirsch, 2022. "Output market power and firm characteristics in dairy processing: Evidence from three EU countries," Journal of Agricultural Economics, Wiley Blackwell, vol. 73(2), pages 490-517, June.
    2. Koppenberg, Maximilian & Hirsch, Stefan, 2020. "Comparing methods for markup estimation with an application to EU food retailing," 2020 Annual Meeting, July 26-28, Kansas City, Missouri 304272, Agricultural and Applied Economics Association.
    3. Mydland, Ørjan & Størdal, Ståle & Kumbhakar, Subal C. & Lien, Gudbrand, 2022. "Modeling markups and its determinants: The case of Norwegian industries and regions," Economic Analysis and Policy, Elsevier, vol. 76(C), pages 252-262.
    4. Maximilian Koppenberg & Stefan Hirsch, 2022. "Markup estimation: A comparison of contemporary methods at the example of European food retailers," Agribusiness, John Wiley & Sons, Ltd., vol. 38(1), pages 108-133, January.

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