Market power in the European dairy industry

Lukas Cechura, Zdenka Žáková Kroupová and Heinrich Hockmann

EconStor Open Access Articles and Book Chapters, 2015, vol. 7, issue 4, 39-47

Abstract: The paper presents an analysis of market power in the output milk-processing market. In particular, the paper identifies market failures in the output milk-processing market in 24 EU member states. The analysis is based on a mark-up model and the application of stochastic frontier methodology. The results show that market failures are pronounced on the EU output milk-processing market. However, the abuse of oligopoly market power is not large on average, despite the fact that we can find significant differences among the countries. The mark-up distribution is skewed toward lower values. That is, the majority of companies are characterized by only a small or almost no degree of market power; however, there are companies (about 10 %) with considerably high oligopoly market power.

Keywords: milk; market power; oligopoly; SFA; European Union; mléko; tržní síla; oligopol; Evropská unie (search for similar items in EconPapers)
Date: 2015
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Citations: View citations in EconPapers (2)

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Persistent link: https://EconPapers.repec.org/RePEc:zbw:espost:251799

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