Oligopsony Power in the Ukrainian Milk Processing Industry: Evidence from the Regional Markets for Raw Milk
AbstractMost of the studies based on the New Empirical Industrial Organization (NEIO) approach use the industry data to estimate the degree of market power at the national level. Yet, only a few empirical studies presented the results that measure the degree of market power at the regional level and found the existence of market power in the regional markets. While the fact is that there is an extensive evidence for the existence of potential oligopsony market power in the Ukrainian milk processing industry (price cartels and geographic market sharing among milk processing enterprises, interference of the state authorities, higher concentration on regional markets), the estimation results of the market structure model at the national level did not produce any evidence suggesting the exercise of oligopsony power (the estimated parameter of oligopsony power is close to zero and statistically insignificant). The objective of this study is to estimate the degree of oligopsony power in the regional market for raw milk. The estimation results of the market structure model at the regional level indicate the existence of oligopsony power in nine out of the twenty three regions of Ukraine.
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Bibliographic InfoPaper provided by International Association of Agricultural Economists in its series 2009 Conference, August 16-22, 2009, Beijing, China with number 50965.
Date of creation: 11 Jun 2009
Date of revision:
New Empirical Industrial Organization (NEIO); Oligopsony Power; Ukraine.; Industrial Organization; C0; D0; D4; L0; Q1;
Find related papers by JEL classification:
- C0 - Mathematical and Quantitative Methods - - General
- D0 - Microeconomics - - General
- D4 - Microeconomics - - Market Structure and Pricing
- L0 - Industrial Organization - - General
- Q1 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Agriculture
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