Oligopoly power in the food and tobacco industries

Sanjib Bhuyan, Rigoberto A. Lopez

Research output: Contribution to journalArticlepeer-review

79 Scopus citations

Abstract

In this article we estimate and test for the degree of oligopoly power and economies of scale in forty food and tobacco industries using the New Empirical Industrial Organization (NEIO) framework and four-digit SIC data. Lerner indices and elasticities of scale are compared throughout the entire food and tobacco industries. T-tests verify that all but three of these industries exert statistically significant degrees of oligopoly power and that over 82% of these industries exhibit nonconstant returns to scale. The empirical results also provide estimates of the price elasticities of demand for each industry.

Original languageEnglish (US)
Pages (from-to)1035-1043
Number of pages9
JournalAmerican Journal of Agricultural Economics
Volume79
Issue number3
DOIs
StatePublished - Aug 1997

All Science Journal Classification (ASJC) codes

  • Economics and Econometrics
  • Agricultural and Biological Sciences (miscellaneous)

Keywords

  • Economies of scale
  • Elasticity of demand
  • Food and tobacco industries
  • Market power
  • NEIO
  • Oligopoly power
  • Returns to scale

Fingerprint

Dive into the research topics of 'Oligopoly power in the food and tobacco industries'. Together they form a unique fingerprint.

Cite this