Market Power in the European Dairy Industry

Lukáš Čechura, Zdeňka Žáková Kroupová and Heinrich Hockmann ()

AGRIS on-line Papers in Economics and Informatics, 2015, vol. 07, issue 4, 9

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: Agricultural Finance; Crop Production/Industries; Research and Development/Tech Change/Emerging Technologies; Research Methods/Statistical Methods; Risk and Uncertainty (search for similar items in EconPapers)
Date: 2015
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Citations: View citations in EconPapers (8)

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Persistent link: https://EconPapers.repec.org/RePEc:ags:aolpei:231891

DOI: 10.22004/ag.econ.231891

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