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 language | English |
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Pages (from-to) | 1149-1165 |
Journal | Empirical Economics |
Volume | 45 |
Issue number | 3 |
DOIs | |
Publication status | Published - 2013 |
Keywords
- price-cost margins
- market-structure
- united-states
- cyclical fluctuations
- manufacturing-industries
- sample properties
- efficiency
- competition
- estimators
- trade