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Testing oligopoly power in domestic and export markets

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  • Carlos Arnade
  • Daniel Pick
  • Munisamy Gopinath

Abstract

Empirical applications of testing oligopoly power in different industries are based on the 'new empirical industrial organization' (NEIO) approach. Parallel to this approach, theoretical and empirical applications to testing oligopoly power in international trade have also emerged. A shortcoming of these approaches is that they do not account for the possibility that an industry, which is active in the domestic and international markets, may exhibit oligopoly power in both markets. We extend the existing models by simultaneously accounting for domestic and international components of four industries in testing for oligopoly power. We found that in some cases, industries exhibit oligopoly behaviour in either or both markets.

Suggested Citation

  • Carlos Arnade & Daniel Pick & Munisamy Gopinath, 1998. "Testing oligopoly power in domestic and export markets," Applied Economics, Taylor & Francis Journals, vol. 30(6), pages 753-760.
    • Handle: RePEc:taf:applec:v:30:y:1998:i:6:p:753-760
    DOI: 10.1080/000368498325453
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    References listed on IDEAS

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    2. Reimer, Jeffrey J. & Stiegert, Kyle W., 2006. "Evidence on Imperfect Competition and Strategic Trade Theory," Staff Paper Series 498, University of Wisconsin, Agricultural and Applied Economics.
    3. Mita Bhattacharya & Jong-Rong Chen, 2009. "Market dynamics and dichotomy: evidence from Taiwanese manufacturing," Applied Economics, Taylor & Francis Journals, vol. 41(17), pages 2169-2179.
    4. Reimer, Jeffrey J. & Steigert, Kyle W., 2006. "Imperfect Competition and Strategic Trade Theory: What Have We Learned?," Working Papers 201528, University of Wisconsin-Madison, Department of Agricultural and Applied Economics, Food System Research Group.
    5. Schweizer, Heidi & Steinbach, Sandro & Zhuang, Xiting, 2022. "A Portrait of Firms that Trade in Meat Products," Western Economics Forum, Western Agricultural Economics Association, vol. 20(2), December.
    6. Craig Gallet, 2004. "The efficacy of state-level antismoking laws: Demand and supply considerations," Journal of Economics and Finance, Springer;Academy of Economics and Finance, vol. 28(3), pages 404-412, September.
    7. Dimitrios Panagiotou & Athanassios Stavrakoudis, 2020. "A Stochastic Frontier Analysis Approach for Estimating Market Power in the Major US Meat Export Markets," Journal of Industry, Competition and Trade, Springer, vol. 20(3), pages 569-586, September.
    8. Craig A. Gallet, 2003. "Advertising and Restrictions in the Cigarette Industry: Evidence of State‐by‐State Variation," Contemporary Economic Policy, Western Economic Association International, vol. 21(3), pages 338-348, July.

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