Firm Specific Monopoly Power in Differentiated Oligopoly
AbstractIn the context of differentiated oligopoly the monopoly power of any one firm is determined by its ability to develop non-price strategies while taking the reactions of the rivals into account. However, in current practice, estimates of firm level monopoly power account for only differences of prices over costs measured in different ways. Further, these differences are always attributed to the demand conditions and the associated elasticity of demand for the differentiated products. That is, it is presumed that firms maximize their profits based on margins rather than volumes or other aspects that shift their demand curves. By way of contrast, the present study acknowledges that the elasticity of demand per se may not be the only source of monopoly power. Hence, an attempt has been made to develop an empirical procedure to identify firm specific monopoly power incorporating non-price dimensions.
Download InfoIf you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.
Bibliographic InfoArticle provided by The Indian Econometric Society in its journal Journal of Quantitative Economics.
Volume (Year): 10 (2012)
Issue (Month): 1 (January)
Postal: Managing Editor, Journal of Quantitative Economics, Indira Gandhi Institute of Development Research (IGIDR), Gen. A.K. Vaidya Marg, Goregaon (E), Mumbai 400 065 , INDIA
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- Delis, Manthos D. & Tsionas, Efthymios G., 2009.
"The joint estimation of bank-level market power and efficiency,"
Journal of Banking & Finance,
Elsevier, vol. 33(10), pages 1842-1850, October.
- Delis, Manthos D & Tsionas, Efthymios, 2009. "The joint estimation of bank-level market power and efficiency," MPRA Paper 14040, University Library of Munich, Germany.
- Kozo Kiyota & Takanobu Nakajima & Kiyohiko G. Nishimura, 2009. "Measurement of the market power of firms: the Japanese case in the 1990s," Industrial and Corporate Change, Oxford University Press, vol. 18(3), pages 381-414, June.
- Kenneth G. Elzinga & David E. Mills, 2011. "The Lerner Index of Monopoly Power: Origins and Uses," American Economic Review, American Economic Association, vol. 101(3), pages 558-64, May.
- Morgenroth, Edgar, 2008. "Exploring the Economic Geography of Ireland," Papers WP271, Economic and Social Research Institute (ESRI).
- Zimmerman, Paul R. & Carlson, Julie A., 2010. "Competition and cost pass-through in differentiated oligopolies," MPRA Paper 25931, University Library of Munich, Germany.
- Coccorese, Paolo, 2009. "Market power in local banking monopolies," Journal of Banking & Finance, Elsevier, vol. 33(7), pages 1196-1210, July.
- Lijesen, Mark G., 2004. "Adjusting the Herfindahl index for close substitutes: an application to pricing in civil aviation," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 40(2), pages 123-134, March.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (D. M. Nachane) or ().
If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.
If references are entirely missing, you can add them using this form.
If the full references list an item that is present in RePEc, but the system did not link to it, you can help with this form.
If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your profile, as there may be some citations waiting for confirmation.
Please note that corrections may take a couple of weeks to filter through the various RePEc services.