Market Structure Conduct Performance Hypothesis Revisited Using Stochastic Frontier Efficiency Analysis

Saleem Shaik, Albert J. Allen, Seanicaa Edwards and James Harris

No 55121, Agribusiness & Applied Economics Report from North Dakota State University, Department of Agribusiness and Applied Economics

Abstract: Stochastic frontier analysis, which is used to estimate the technical efficiency, is extended to examine the market structure, conduct and performance hypothesis for the U.S. trucking industry. The technical efficiency measure takes into account not only the relationship between inputs used in the production of output but also simultaneously examine the importance of market structure conduct factors on the performance of the firm. An empirical application to U.S. trucking carriers over the period 1994-2003 is examined. Results reveal that the variables average haul, average load, debt-to-equity and market concentration significantly affected technical efficiency. Capital, fixed and variable input variables were significant in the production function equation.

Keywords: Demand and Price Analysis; Marketing (search for similar items in EconPapers)
Pages: 24
Date: 2009-09
New Economics Papers: this item is included in nep-com and nep-eff
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Citations: View citations in EconPapers (4)

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Journal Article: Market Structure Conduct Performance Hypothesis Revisited Using Stochastic Frontier Efficiency Analysis (2009)
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Persistent link: https://EconPapers.repec.org/RePEc:ags:nddaae:55121

DOI: 10.22004/ag.econ.55121

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