Testing for Market Power under the Two-Price System in the U.S. Copper Industry
Before 1978, most of the U.S. domestic copper production and an important fraction of the imports were traded at a price set by the major U.S. producers. Simultaneously, the rest of the world was trading copper at prices determined in auction markets. This two-price system ended in 1978, when the largest U.S. producers began using the Comex price of refined copper as a benchmark for setting their prices. Using this regime shift I test empirically the competitive behavior of the US copper industry before 1978. The results show that copper prices were close to the ones predicted by a competitive model of the industry.
|Date of creation:||Mar 2005|
|Date of revision:|
|Contact details of provider:|| Postal: |
Phone: (562) 692-0265
Fax: (562) 692-0303
Web page: http://www.economia.uahurtado.cl/
More information through EDIRC
|Order Information:|| Email: |
References listed on IDEAS
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- Hart, Sergiu & Kurz, Mordecai, 1983. "Endogenous Formation of Coalitions," Econometrica, Econometric Society, vol. 51(4), pages 1047-64, July.
- James G. MacKinnon & Nancy D. Olewiler, 1980.
"Disequilibrium Estimation of the Demand for Copper,"
Bell Journal of Economics,
The RAND Corporation, vol. 11(1), pages 197-211, Spring.
- James G. MacKinnon & Nancy D. Olewiler, 1978. "Disequilibrium Estimation of the Demand for Copper," Working Papers 315, Queen's University, Department of Economics.
- Vial, Joaquin, 1992. "Copper consumption in the USA: Main determinants and structural changes," Resources Policy, Elsevier, vol. 18(2), pages 107-121, June.
- Hubbard, R Glenn & Weiner, Robert J, 1989. "Contracting and Price Adjustment in Commodity Markets: Evidence from Copper and Oil," The Review of Economics and Statistics, MIT Press, vol. 71(1), pages 80-89, February.
- E. C. Hwa, 1979. "Price Determination in Several International Primary Commodity Markets: A Structural Analysis (La dÃ©termination des prix sur plusieurs marchÃ©s internationaux de produits primaires de base: Analyse s," IMF Staff Papers, Palgrave Macmillan, vol. 26(1), pages 157-188, March.
- Bresnahan, Timothy F., 1989. "Empirical studies of industries with market power," Handbook of Industrial Organization, in: R. Schmalensee & R. Willig (ed.), Handbook of Industrial Organization, edition 1, volume 2, chapter 17, pages 1011-1057 Elsevier.
- Stewardson, B R, 1970. "The Nature of Competition in the World Market for Refined Copper," The Economic Record, The Economic Society of Australia, vol. 46(114), pages 169-81, June.
- Vives, Xavier, 1986. "Rationing rules and Bertrand-Edgeworth equilibria in large markets," Economics Letters, Elsevier, vol. 21(2), pages 113-116.
- Patricia T. Foley & Joel P. Clark, 1982. "The Effects of State Taxation on United States Copper Supply," Land Economics, University of Wisconsin Press, vol. 58(2), pages 153-180.
When requesting a correction, please mention this item's handle: RePEc:ila:ilades:inv159. 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: (Marcela Perticara)
If references are entirely missing, you can add them using this form.