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Survey of Empirical Studies of Market Power in Food Industries


  • Perekhozhuk, Oleksandr
  • Glauben, Thomas
  • Teuber, Ramona
  • Grings, Michael


The objective of this study is, based on the existing literature, to provide a general systematic characteristic of market structure models. We distinguish cost, production, profit, revenue functions, as well as the general identification approach as most plausible methods to measure the degree of market power. Using time-series data of the Ukrainian milk processing industry, as an example, we utilized the production approach to estimate the exercise of oligopsony power, test functional forms and verify estimation methods. The results of two-equation models did not produce any evidence suggesting the exercise of market power, whereas, the three-equation models revealed the presence of oligopsony.

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  • Perekhozhuk, Oleksandr & Glauben, Thomas & Teuber, Ramona & Grings, Michael, 2012. "Survey of Empirical Studies of Market Power in Food Industries," 2012 Conference, August 18-24, 2012, Foz do Iguacu, Brazil 126203, International Association of Agricultural Economists.
  • Handle: RePEc:ags:iaae12:126203

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    References listed on IDEAS

    1. Bresnahan, Timothy F., 1982. "The oligopoly solution concept is identified," Economics Letters, Elsevier, vol. 10(1-2), pages 87-92.
    2. Appelbaum, Elie, 1982. "The estimation of the degree of oligopoly power," Journal of Econometrics, Elsevier, vol. 19(2-3), pages 287-299, August.
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    More about this item


    New Empirical Industrial Organization (NEIO); Oligopsony power; Ukraine; Agribusiness; Demand and Price Analysis; Industrial Organization; L13; P23; R15;

    JEL classification:

    • L13 - Industrial Organization - - Market Structure, Firm Strategy, and Market Performance - - - Oligopoly and Other Imperfect Markets
    • P23 - Economic Systems - - Socialist Systems and Transition Economies - - - Factor and Product Markets; Industry Studies; Population
    • R15 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - General Regional Economics - - - Econometric and Input-Output Models; Other Methods

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