IDEAS home Printed from https://ideas.repec.org/a/ris/qjatoe/0018.html
   My bibliography  Save this article

Monopoly Power in Iranian Rubber and Plastics Industries: A Comparative

Author

Listed:
  • Khodadad Kashi, Farhad

    () (Professor of Economics, Payam Noor University)

  • Norani Azad, Samaneh

    () (Assistant Professor of Economics, Payam Noor University)

  • Geravand, Khadijeh

    () (MA in Economics, Payam Noor University)

Abstract

The main purposes of this article are the evaluation of competition and comparison of market power in rubber and plastics industries with two non-structural approaches. To meet this ends Bresnehan-Lau (1982) and Panzar-Ross (1987) models were used. Data in 4-digit industries for rubber and plastics sub-sectors over the period of 1995-2011 collected from Iran’s statistical center. Equations used in this study consist of supply-demand and reduced form revenue functions estimated with two stage least squares fixed effect (FE2SLS) and least square dummy variables (LSDV) methods respectively. Results indicated that the extent of conjectural variation coefficient was about θ=0.82 because of the fact that firms cooperate with each other, therefore there was imperfect competition structure in this sector. On the other hand, the sum of elasticity’s reduced form revenue with respect to input price was about H=0.81, so market structure was featured as a monopolistic competition. In addition, Comparative results of two approaches confirmed depletion of competition in Iranian rubber and plastics industries.

Suggested Citation

  • Khodadad Kashi, Farhad & Norani Azad, Samaneh & Geravand, Khadijeh, 2015. "Monopoly Power in Iranian Rubber and Plastics Industries: A Comparative," Quarterly Journal of Applied Theories of Economics, Faculty of Economics, Management and Business, University of Tabriz, vol. 2(3), pages 27-48, December.
  • Handle: RePEc:ris:qjatoe:0018
    as

    Download full text from publisher

    File URL: http://ecoj.tabrizu.ac.ir/jufile?c2hvd1BERj00NTgzJl9hY3Rpb249c2hvd1BERiZhcnRpY2xlPTQ1ODMmX29iPTkwMTI5OTYxYWRhMDVlZGU1MmQ0YzNlZjExNDk5NWM4
    File Function: Full text
    Download Restriction: no

    More about this item

    Keywords

    Market power; Conjectural variation; H-statistic; Competition; Monopoly;

    JEL classification:

    • L10 - Industrial Organization - - Market Structure, Firm Strategy, and Market Performance - - - General
    • L13 - Industrial Organization - - Market Structure, Firm Strategy, and Market Performance - - - Oligopoly and Other Imperfect Markets
    • L69 - Industrial Organization - - Industry Studies: Manufacturing - - - Other

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:ris:qjatoe:0018. 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: (Sakineh Sojoodi). General contact details of provider: http://edirc.repec.org/data/fetabir.html .

    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.

    We have no references for this item. You can help adding them by using 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 RePEc Author Service 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.

    IDEAS is a RePEc service hosted by the Research Division of the Federal Reserve Bank of St. Louis . RePEc uses bibliographic data supplied by the respective publishers.