Price Rigidity and Industrial Concentration: Evidence from the Indonesian Food and Beverages Industry

M. Setiawan; G. Emvalomatis; A.G.J.M. Oude Lansink

doi:10.1111/asej.12047

Price Rigidity and Industrial Concentration: Evidence from the Indonesian Food and Beverages Industry

M. Setiawan^*, G. Emvalomatis, A.G.J.M. Oude Lansink

^*Corresponding author for this work

Research output: Contribution to journal › Article › Academic › peer-review

5 Citations (Scopus)

Abstract

This paper investigates the relationship between industrial concentration and price rigidity in the Indonesian food and beverages industry. A Cournot model of firm behavior is used in which prices adjust according to a partial adjustment mechanism. The model is applied to panel data of the Indonesian food and beverages industry over the period 1995–2006. The results suggest that industrial concentration has a positive effect on percentage price changes. Furthermore, the speed of price adjustment is higher when the per unit cost of production rises.

Original language	English
Pages (from-to)	61-72
Journal	Asian Economic Journal
Volume	29
Issue number	1
DOIs	https://doi.org/10.1111/asej.12047
Publication status	Published - 2015

Keywords

oligopoly
demand

Access to Document

10.1111/asej.12047

Cite this

@article{6905b3a809cc4f9395e003e0f942a93a,

title = "Price Rigidity and Industrial Concentration: Evidence from the Indonesian Food and Beverages Industry",

abstract = "This paper investigates the relationship between industrial concentration and price rigidity in the Indonesian food and beverages industry. A Cournot model of firm behavior is used in which prices adjust according to a partial adjustment mechanism. The model is applied to panel data of the Indonesian food and beverages industry over the period 1995–2006. The results suggest that industrial concentration has a positive effect on percentage price changes. Furthermore, the speed of price adjustment is higher when the per unit cost of production rises.",

keywords = "oligopoly, demand",

author = "M. Setiawan and G. Emvalomatis and {Oude Lansink}, A.G.J.M.",

year = "2015",

doi = "10.1111/asej.12047",

language = "English",

volume = "29",

pages = "61--72",

journal = "Asian Economic Journal",

issn = "1351-3958",

publisher = "Wiley",

number = "1",

}

TY - JOUR

T1 - Price Rigidity and Industrial Concentration: Evidence from the Indonesian Food and Beverages Industry

AU - Setiawan, M.

AU - Emvalomatis, G.

AU - Oude Lansink, A.G.J.M.

PY - 2015

Y1 - 2015

N2 - This paper investigates the relationship between industrial concentration and price rigidity in the Indonesian food and beverages industry. A Cournot model of firm behavior is used in which prices adjust according to a partial adjustment mechanism. The model is applied to panel data of the Indonesian food and beverages industry over the period 1995–2006. The results suggest that industrial concentration has a positive effect on percentage price changes. Furthermore, the speed of price adjustment is higher when the per unit cost of production rises.

AB - This paper investigates the relationship between industrial concentration and price rigidity in the Indonesian food and beverages industry. A Cournot model of firm behavior is used in which prices adjust according to a partial adjustment mechanism. The model is applied to panel data of the Indonesian food and beverages industry over the period 1995–2006. The results suggest that industrial concentration has a positive effect on percentage price changes. Furthermore, the speed of price adjustment is higher when the per unit cost of production rises.

KW - oligopoly

KW - demand

U2 - 10.1111/asej.12047

DO - 10.1111/asej.12047

M3 - Article

SN - 1351-3958

VL - 29

SP - 61

EP - 72

JO - Asian Economic Journal

JF - Asian Economic Journal

IS - 1

ER -

Price Rigidity and Industrial Concentration: Evidence from the Indonesian Food and Beverages Industry

Abstract

Keywords

Access to Document

Fingerprint

Cite this