Journal of Food, Agriculture and Environment

Measuring market power and cost efficiency: An application to the Chinese milk industry 

Author(s):

Yucheng He ¹*, Qian Zhang ², Guang Yang ², Shuang Cao ¹, Wenna Ding ¹, Li Sha Hu¹

Recieved Date: 2012-12-28, Accepted Date: 2013-04-26

Abstract:

With the increase of concentration in the fluid milk industry, firms’ ability to exercise market power has aroused the concern of the Chinese government. To separate the market power effect of concentration from its cost efficiency effect, we developed an empirical model for measuring these two kinds of effects. The model is based on a theoretical framework which is known as the ‘New Empirical Industrial Organization (NEIO)’ approach. Data from the Chinese fluid milk industry for the 1993–2011 time periods are used to evaluate the effects of concentration. The findings show the cost efficiency effect outweighs the market power effect. 

Keywords:

Milk industry, market power, cost efficiency, concentration

---

Journal: Journal of Food, Agriculture and Environment
Year: 2013
Volume: 11
Issue: 2
Category: Food and Health
Pages: 263-266

---

Full text for Subscribers

---

Information:

Note to users

The requested document is freely available only to subscribers/registered users with an online subscription to the Journal of Food, Agriculture & Environment. If you have set up a personal subscription to this title please enter your user name and password. All abstracts are available for free.

Article purchasing

If you like to purchase this specific document such as article, review or this journal issue, contact us. Specify the title of the article or review, issue, number, volume and date of the publication. Software and compilation, Science & Technology, all rights reserved. Your use of this website details or service is governed by terms of use. Authors are invited to check from time to time news or information.

---

Purchase this Article:   20 Purchase PDF Order Reprints for 15

---

Share this article :