Is the Fluid Milk Subsector Competitive in Turkey?

Selim Adem HATIRLI

Article Details

Is the Fluid Milk Subsector Competitive in Turkey?

Authors:

Selim Adem HATIRLI

Publisher:

TUBITAK

Journal:

Turkish Journal of Veterinary and Animal Sciences 2004 Vol.28 Issue 4, pp.663-668

Document Type:

Article

Publication Date:

3/2004

Document Language:

Turkish

Document ID (Org No.):

2000769437

Frequency:

Bimonthly

eISSN:

1303-6181

pISSN:

1300-0128

Keywords:

Abstract:

 

The significant increase in the concentration ratio in Turkey’s fluid milk market has heightened concern about the exercise of market power. During 1980-98, the 4-firm concentration ratio and Herfindahl index increased by 11% and 33%, respectively. In this study, we estimated the degree of imperfection in the fluid milk market at retail level using the New Empirical Industrial Organization approach during the period 1980-98. For this purpose, the demand equation and first-order-profit maximization condition, which allow the degree of market power to be determined, were estimated. Using 2-stage-least-square estimation, market power was found to be 0.11. This parameter shows that the fluid milk market is not perfectly competitive, but the behavior of firms is much closer to price taking than to collusion.

 

The significant increase in the concentration ratio in Turkey’s fluid milk market has heightened concern about the exercise of market power. During 1980-98, the 4-firm concentration ratio and Herfindahl index increased by 11% and 33%, respectively. In this study, we estimated the degree of imperfection in the fluid milk market at retail level using the New Empirical Industrial Organization approach during the period 1980-98. For this purpose, the demand equation and first-order-profit maximization condition, which allow the degree of market power to be determined, were estimated. Using 2-stage-least-square estimation, market power was found to be 0.11. This parameter shows that the fluid milk market is not perfectly competitive, but the behavior of firms is much closer to price taking than to collusion.

Article Details

Is the Fluid Milk Subsector Competitive in Turkey?

Authors:

Selim Adem HATIRLI

Publisher:

TUBITAK

Journal:

Turkish Journal of Veterinary and Animal Sciences 2004 Vol.28 Issue 4, pp.663-668

Document Type:

Article

Publication Date:

3/2004

Document Language:

Turkish

Document ID (Org No.):

2000769437

Frequency:

Bimonthly

eISSN:

1303-6181

pISSN:

1300-0128

Turkey’s milk market

market power

competition

oligopoly

Issues

Article Details

Is the Fluid Milk Subsector Competitive in Turkey?

Authors: Selim Adem HATIRLI

Publisher: TUBITAK

Journal: Turkish Journal of Veterinary and Animal Sciences 2004 Vol.28 Issue 4, pp.663-668

Document Type: Article

Publication Date: 3/2004

Document Language: Turkish

Document ID (Org No.): 2000769437

Frequency: Bimonthly

eISSN: 1303-6181

pISSN: 1300-0128

Turkey&#8217;s milk market

market power

competition

oligopoly

Issues

Authors:

Selim Adem HATIRLI

Publisher:

TUBITAK

Journal:

Turkish Journal of Veterinary and Animal Sciences 2004 Vol.28 Issue 4, pp.663-668

Document Type:

Article

Publication Date:

3/2004

Document Language:

Turkish

Document ID (Org No.):

2000769437

Frequency:

Bimonthly

eISSN:

1303-6181

pISSN:

1300-0128

Turkey’s milk market