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Estimating Oligopsony Power in the Hungarian Market for Slaughter Hogs

Author

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  • Lajos Zoltán Bakucs
  • Imre FertÅ
  • Heinrich Hockmann
  • Oleksandr Perekhozhuk

Abstract

A structural market model is estimated to analyze the effect of market power on resource allocation in the Hungarian pork supply chain. Regression analysis suggests that market power exists, though at a relatively low level. Moreover, the estimates show that processors might pursue Cournot strategies. In addition, we observe that market power of processors in the Hungarian sector is increasing. These results are consistent with the structural developments in pork production and pork processing.

Suggested Citation

  • Lajos Zoltán Bakucs & Imre FertÅ & Heinrich Hockmann & Oleksandr Perekhozhuk, 2010. "Estimating Oligopsony Power in the Hungarian Market for Slaughter Hogs," Eastern European Economics, Taylor & Francis Journals, vol. 48(1), pages 64-78, January.
  • Handle: RePEc:mes:eaeuec:v:48:y:2010:i:1:p:64-78
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    Cited by:

    1. Perekhozhuk Oleksandr & Hockmann Heinrich & Fertő Imre & Bakucs Lajos Zoltán, 2013. "Identification of Market Power in the Hungarian Dairy Industry: A Plant-Level Analysis," Journal of Agricultural & Food Industrial Organization, De Gruyter, vol. 11(1), pages 1-13, January.
    2. Perekhozhuk, Oleksandr & Matyukha, Andriy & Glauben, Thomas, 2011. "Estimating the Degree of Buyers' Market Power: Evidence from the Ukrainian Meat Processing Industry," 2011 International Congress, August 30-September 2, 2011, Zurich, Switzerland 114782, European Association of Agricultural Economists.
    3. Imre Ferto & Attila Jambor, 2015. "Drivers of vertical intra-industry trade: the case of the Hungarian agri-food sector," Agricultural Economics, International Association of Agricultural Economists, vol. 46(1), pages 113-123, January.

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