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Modelling market power in the Indonesian palm oil industry

Author

Listed:
  • Chalil, Diana
  • Ahmadi-Esfahani, Fredoun Z.

Abstract

A plethora of approaches to modeling market power has been reported in the literature. These can be broadly divided into one-side and two-side behavioral models. This paper uses versions of these models to develop a theoretical framework to test market power in the output and input markets in the Indonesian cooking oil production chain. The dynamic Lerner Index is also proposed as a reinforcing approach to measuring the degree of market power, and its consequential impacts. The implications of the analysis for further research will be explored.

Suggested Citation

  • Chalil, Diana & Ahmadi-Esfahani, Fredoun Z., 2005. "Modelling market power in the Indonesian palm oil industry," 2005 Conference (49th), February 9-11, 2005, Coff's Harbour, Australia 137804, Australian Agricultural and Resource Economics Society.
  • Handle: RePEc:ags:aare05:137804
    DOI: 10.22004/ag.econ.137804
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