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What Determines Welfare Losses from Oligopoly Power in the Food and Tobacco Industries?

Published online by Cambridge University Press:  15 September 2016

Sanjib Bhuyan  and
Rigoberto A. Lopez
Sanjib Bhuyan
Affiliation:
Department of Agriculture, Food, and Resource Economics, Rutgers University
Rigoberto A. Lopez
Affiliation:
Department of Agricultural and Resource Economics, University of Connecticut
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Abstract

This paper estimates welfare losses in thirty-eight U.S. food and tobacco industries at the four-digit SIC level, then relates such losses to market structure and conduct variables to identify the welfare loss determinants. Empirical findings indicate that these losses are higher in markets characterized by high export intensity, high advertising expenditures, economies of scale, mergers and acquisitions, and market concentration. In addition, losses are larger in industries that sell finished consumer products and face lower import competition.

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Type
Articles
Information
Agricultural and Resource Economics Review , Volume 27 , Issue 2 , October 1998 , pp. 258 - 265
Copyright
Copyright © 1998 Northeastern Agricultural and Resource Economics Association 

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