Testing oligopoly power in domestic and export markets

Carlos Arnade, Daniel Pick and Munisamy Gopinath

Applied Economics, 1998, vol. 30, issue 6, 753-760

Abstract: Empirical applications of testing oligopoly power in different industries are based on the 'new empirical industrial organization' (NEIO) approach. Parallel to this approach, theoretical and empirical applications to testing oligopoly power in international trade have also emerged. A shortcoming of these approaches is that they do not account for the possibility that an industry, which is active in the domestic and international markets, may exhibit oligopoly power in both markets. We extend the existing models by simultaneously accounting for domestic and international components of four industries in testing for oligopoly power. We found that in some cases, industries exhibit oligopoly behaviour in either or both markets.

Date: 1998
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DOI: 10.1080/000368498325453

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