Degree of Instant Competition! Estimation of Market Power in India’s Instant Coffee Market

Satish Y. Deodhar and Vivek Pandey
Additional contact information
Satish Y. Deodhar: Indian Institute of Management, Vastrapur, Ahmedabad - 380015, India

Indian Economic Review, 2008, vol. 43, issue 2, 253-264

Abstract: New competition policy seeks to promote competition and increase market efficiency. In fact, degree of price transmission between farmers and final consumers depends on degree of competition in processing sector. Moreover, trade liberalization policy is expected to influence domestic markets. Hence, it becomes imperative to know the degree of competition in various industries. India's instant coffee market is a duopoly of the firms- Nestlé and Hindustan Lever. We econometrically estimate the degree of competition in this market. Results indicate that market is not characterized by collusive behaviour. It is close to perfect competition although we cannot reject the Cournot-Nash behaviour.

Keywords: Market Power; Instant Coffee Market; Lerner Index; Conjectural Variations; Competition Policy; India (search for similar items in EconPapers)
JEL-codes: D4 L1 L51 L66 (search for similar items in EconPapers)
Date: 2008
References: Add references at CitEc
Citations: View citations in EconPapers (4)

There are no downloads for this item, see the EconPapers FAQ for hints about obtaining it.

Related works:
Working Paper: Degree of Instant Competition: Estimation of Market Power in India Instant Coffee Market (2006)
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:dse:indecr:v:43:y:2008:i:2:p:253-264

Ordering information: This journal article can be ordered from
http://www.ierdse.org/

Access Statistics for this article

Indian Economic Review is currently edited by Pami Dua (Editor) & Ram Singh (Associate Editor) and Sunil Kanwar

More articles in Indian Economic Review from Department of Economics, Delhi School of Economics University of Delhi, Delhi 110 007. Contact information at EDIRC.
Bibliographic data for series maintained by Pami Dua ().