Estimating the Degree of Buyers' Market Power: Evidence from the Ukrainian Meat Processing Industry
AbstractThis study develops a structural market model for the econometric analysis of buyers’ market power in the Ukrainian meat processing industry, because there is some evidence that suggests that meat processors may excise market power in the agricultural market of slaughtered livestock. The estimation results did not produce any evidence suggesting the existence of buyers’ market power. Contrary to many other NEIO-studies, we extended the market structure market model by the three subsequent models. Using endogenously determined values for market power parameter, we found that meat processors concerning the buyers’ market for slaughtered livestock behave consistently with Cournot conjectures.
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Bibliographic InfoPaper provided by European Association of Agricultural Economists in its series 2011 International Congress, August 30-September 2, 2011, Zurich, Switzerland with number 114782.
Date of creation: 02 Sep 2011
Date of revision:
Cournot competition; market power; meat processing industry; new empirical industrial organisation (NEIO); Ukraine; Livestock Production/Industries; Marketing;
This paper has been announced in the following NEP Reports:
- NEP-ALL-2011-10-15 (All new papers)
- NEP-COM-2011-10-15 (Industrial Competition)
- NEP-IND-2011-10-15 (Industrial Organization)
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