Estimation of market power and simulations of the effects of exogenous shocks on the baby formula market in Korea

• 발행기관: 한국농업경제학회
• 저자명: Byeong Il Ahn
• 간행물 정보: 『농업경제연구』50권 3호, 65~81쪽, 전체 17쪽
• 주제분류: 경제경영 > 경제학
• 파일형태: PDF
• 발행일자: 2009.09.30

영문 초록

To assess the impacts of exogenous shocks including policy changes on the Korean baby formula market, this paper presents an equilibrium model of an oligopoly market. It is showed how we derive some useful parameters in an oligopoly market such as supply elasticity with respect to marginal cost in this paper. The adjusted Lerner index in Korean baby formula industry is measured as 0.104 and the average of derived mark-up is 8.64 percent. The estimated excess profits for the producers of baby formula have been increased over time. Simulation results indicate a small decrease in the new-born babies in a short run will not have big influences on the baby formula industry.

목차

Ⅰ. Introduction

Ⅱ. Some previous studies estimating market power

Ⅲ. Theoretical model

Ⅳ. Empirical Results

Ⅴ. Summary and Conclusion

키워드

Oligopoly Conjectural Variation Supply relation Market power Baby formula