Advanced Search
MyIDEAS: Login

Market power: Modeling issues and identification problems. An investigation of selected Hungarian food chains


Author Info

  • Bakucs, Lajos Zoltan
  • Ferto, Imre
  • Hockmann, Heinrich
  • Perekhozhuk, Oleksandr


In recent years increasing number of contractual arrangements in food chains are observed. There are several reasons for this phenomenon. Improving food quality often requires significant specific investments. Given high asset specificity, investors find it difficult to appropriate the returns on investment and thus have incentives to integrate. However, besides this transaction costs related argument, the ongoing vertical integration can result from structural developments in food chains which at different stages of the value chains, might hamper the proper functioning of markets. Using a unique, firm level dataset, in this paper we will focus on the latter issue. Due to its importance among various Hungarian value chains, we have selected the milk market. The objective is to conduct an analysis of market structure and pricing behaviour, with the main research question being the existence and significance of market power, its impact of factor allocation and the induced incentives for forward and backward integration. Several theoretical and empirical approaches including structural model estimation are applied in order to investigate whether market power is exploited or not. The empirical results are discussed against the background of several issues associated with the functioning of markets and a better understanding of institutional choice. Moreover, policy recommendation will be discussed.

Download Info

If 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.
File URL:
Download Restriction: no

Bibliographic Info

Paper provided by European Association of Agricultural Economists in its series 113th Seminar, September 3-6, 2009, Chania, Crete, Greece with number 57977.

as in new window
Date of creation: 2009
Date of revision:
Handle: RePEc:ags:eaa113:57977

Contact details of provider:
Web page:
More information through EDIRC

Related research

Keywords: Market power; Hungarian food chains.; Food Consumption/Nutrition/Food Safety;


No references listed on IDEAS
You can help add them by filling out this form.



This item is not listed on Wikipedia, on a reading list or among the top items on IDEAS.


Access and download statistics


When requesting a correction, please mention this item's handle: RePEc:ags:eaa113:57977. See general information about how to correct material in RePEc.

For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (AgEcon Search).

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.