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Measuring the degree of market power in Indonesian beef industry

Research output: Contribution to journalArticlepeer-review

Abstract

This paper identifies the market power role in Indonesia beef industry. It adopted New Empirical Industrial Organization (NEIO) approach to measure conjectural elasticity as a reflection of market power level to get oligopoly/oligopsony strength index to reflect both the collusion force level to determine the purchase price and sales price at beef market. Study result shows that a conjectural elasticity and oligopoly and oligopsony index value of beef market in Indonesia is quite high. It indicates that beef market is dominated by collusive market power from competitive market power. In addition, market power has positive and significant effect to determine beef price at consumer level.

Original languageEnglish
Pages (from-to)185-190
Number of pages6
JournalAdvances in Environmental Biology
Volume9
Issue number14
Publication statusPublished - Jul 2015

Keywords

  • Conjectural elasticity
  • Market power
  • Oligopoly/oligopsony index

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