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Measuring the Degree of Market Power Exerted by Government Trade Agencies

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  • Love, H. Alan
  • Murniningtyas, Endah

Abstract

This paper sets up hypotheses tests for the exertion of market power by government trade agencies. The principle of profit maximization is used to derive an equilibrium condition for noncompetitive markets and provide explicit parametric tests for the level of market power exerted. This study differs from previous works in that exertion of market power is revealed through econometric techniques as opposed to the prevailing practice of comparing simulation outcomes to actual data. The Japanese role in wheat trade is selected as an application of the method.

Suggested Citation

  • Love, H. Alan & Murniningtyas, Endah, 1990. "Measuring the Degree of Market Power Exerted by Government Trade Agencies," Occasional Papers 233055, Regional Research Project NC-194: Organization and Performance of World Food Systems.
    • Handle: RePEc:ags:nc194o:233055
    DOI: 10.22004/ag.econ.233055
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    Keywords

    Agricultural and Food Policy;

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