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Non-Collusive Oligopoly and Business Cycle: Some Further Evidence

Author

Listed:
  • Marcelo Resende

    (Instituto de Economia, Universidade Federal do Rio de Janeiro)

Abstract

The paper examines the differential exercise of market power over the business cycle in the context of selected sectors in the Canadian manufacturing industry during the 1992-1/2007-4 period. In particular, empirical implications of non-collusive models previously explored by Wilson and Reynolds (2005) are further investigated by considering data for selected disaggregated and homogeneous sectors and is consistent with a multiple regimes formulation. A main implication concerning differential variances for changes in prices in the two demand regimes is partially supported in the investigated sectors.

Suggested Citation

  • Marcelo Resende, 2012. "Non-Collusive Oligopoly and Business Cycle: Some Further Evidence," Economics Bulletin, AccessEcon, vol. 32(1), pages 883-893.
    • Handle: RePEc:ebl:ecbull:eb-12-00123
    as

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    References listed on IDEAS

    as
    1. Ian Domowitz & R. Glenn Hubbard & Bruce C. Petersen, 1986. "Business Cycles and the Relationship Between Concentration and Price-Cost Margins," RAND Journal of Economics, The RAND Corporation, vol. 17(1), pages 1-17, Spring.
    2. Engel, Charles & Hamilton, James D, 1990. "Long Swings in the Dollar: Are They in the Data and Do Markets Know It?," American Economic Review, American Economic Association, vol. 80(4), pages 689-713, September.
    3. Hamilton, James D., 1996. "Specification testing in Markov-switching time-series models," Journal of Econometrics, Elsevier, vol. 70(1), pages 127-157, January.
    4. Hamilton, James D., 1990. "Analysis of time series subject to changes in regime," Journal of Econometrics, Elsevier, vol. 45(1-2), pages 39-70.
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    More about this item

    Keywords

    non-collusive oligopoly; business cycle;

    JEL classification:

    • L1 - Industrial Organization - - Market Structure, Firm Strategy, and Market Performance
    • L6 - Industrial Organization - - Industry Studies: Manufacturing

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