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Measuring Market Power and Cost-Efficiency Effects of Industrial Concentration Author info | Abstract | Publisher info | Download info | Related research | Statistics Azzam, Azzeddine M
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In this paper, the author shows how E. Appelbaum's framework for testing price-taking behavior in a single industry can be formally extended to consider concentration explicitly. In so doing, he separates the market power effect of concentration from its cost-efficiency effect. Data from the U.S. beef-packing industry are used to illustrate an empirical application of the model. The findings support oligopsonistic market power and slaughter-cost efficiency in the industry. However, the cost-efficiency effect outweighs the market-power effect. Copyright 1997 by Blackwell Publishing Ltd
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Article provided by Blackwell Publishing in its journal Journal of Industrial Economics .
Volume (Year): 45 (1997)
Issue (Month): 4 (December)
Pages: 377-86
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Handle: RePEc:bla:jindec:v:45:y:1997:i:4:p:377-86Contact details of provider: Web page: http://www.blackwellpublishing.com/journal.asp?ref=0022-1821
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