Structure, conduct, and performance: evidence from the Indonesian food and beverages industry

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

Research output: Contribution to journalArticleAcademicpeer-review

15 Citations (Scopus)

Abstract

This article employs the Structure–Conduct–Performance (SCP) paradigm to investigate the simultaneous relationship between industrial concentration, price rigidity, technical efficiency, and price-cost margin in the Indonesian food and beverages industry. This research extends the SCP framework by including price rigidity and technical efficiency as additional key variables. The results suggest that there is a simultaneous relationship between industrial concentration, price rigidity, technical efficiency, and price-cost margin with a positive bi-directional relationship between industrial concentration and price-cost margin. These findings imply that an appropriate course of action for the regulator in this highly concentrated industry is to reduce industrial concentration in order to increase competition
Original languageEnglish
Pages (from-to)1149-1165
JournalEmpirical Economics
Volume45
Issue number3
DOIs
Publication statusPublished - 2013

Keywords

  • price-cost margins
  • market-structure
  • united-states
  • cyclical fluctuations
  • manufacturing-industries
  • sample properties
  • efficiency
  • competition
  • estimators
  • trade

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