Determinants of Profitability in Oligopoly and Oligopsony Markets
This paper provides a theoretical model in which the firms within aprocessing industry behave in an oligopolistic and oligopsonisticmarket simultaneously. The model developed yields an equation forprofit margin influenced by determinants of marginal processing costas well as distortions in both mark...
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| Format: | Article |
| Language: | fas |
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پژوهشگاه حوزه و دانشگاه
2005-09-01
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| Series: | جستارهای اقتصادی |
| Subjects: | |
| Online Access: | https://iee.rihu.ac.ir/article_314_fecf20ecf0ee1eebb1d3cd08d03ec30f.pdf |
| _version_ | 1797294103769120768 |
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| author | Majid Ahmadian Mohamd ali Motafaker Azad |
| author_facet | Majid Ahmadian Mohamd ali Motafaker Azad |
| author_sort | Majid Ahmadian |
| collection | DOAJ |
| description | This paper provides a theoretical model in which the firms within aprocessing industry behave in an oligopolistic and oligopsonisticmarket simultaneously. The model developed yields an equation forprofit margin influenced by determinants of marginal processing costas well as distortions in both markets. By pooled cross section andtime series data, the equation is estimated for eleven sugar factoriesinvolved in Tehran Exchange Market over the period of ١٩٩٦-٢٠٠٣.Applications for both markets indicate that with an increase in boththe input share and output share, it causes an increase in the profitmargin; however, it reduces due to increasing in wages fuel andenergy costs. With competitive oligopsonistic market, the collusiondegree initiated by Clarke and Davies (١٩٨٢) in oligoppolistic marketis estimated. It turns out that the collusion parameter is lower andnegligible since price elasticity of demand is a faction for the quasiprice elasticity, but by considering only quasi price demand elasticity,the degree of collusion is estimated to be higher. |
| first_indexed | 2024-03-07T21:24:20Z |
| format | Article |
| id | doaj.art-deebd7071f124f4ba9a2973afe22bc0c |
| institution | Directory Open Access Journal |
| issn | 1735-3300 2588-5812 |
| language | fas |
| last_indexed | 2024-03-07T21:24:20Z |
| publishDate | 2005-09-01 |
| publisher | پژوهشگاه حوزه و دانشگاه |
| record_format | Article |
| series | جستارهای اقتصادی |
| spelling | doaj.art-deebd7071f124f4ba9a2973afe22bc0c2024-02-27T06:52:47Zfasپژوهشگاه حوزه و دانشگاهجستارهای اقتصادی1735-33002588-58122005-09-01241133314Determinants of Profitability in Oligopoly and Oligopsony MarketsMajid Ahmadian0Mohamd ali Motafaker Azad1Faculty Member of Tehran UniversityFaculty Member of Tabriz UniversityThis paper provides a theoretical model in which the firms within aprocessing industry behave in an oligopolistic and oligopsonisticmarket simultaneously. The model developed yields an equation forprofit margin influenced by determinants of marginal processing costas well as distortions in both markets. By pooled cross section andtime series data, the equation is estimated for eleven sugar factoriesinvolved in Tehran Exchange Market over the period of ١٩٩٦-٢٠٠٣.Applications for both markets indicate that with an increase in boththe input share and output share, it causes an increase in the profitmargin; however, it reduces due to increasing in wages fuel andenergy costs. With competitive oligopsonistic market, the collusiondegree initiated by Clarke and Davies (١٩٨٢) in oligoppolistic marketis estimated. It turns out that the collusion parameter is lower andnegligible since price elasticity of demand is a faction for the quasiprice elasticity, but by considering only quasi price demand elasticity,the degree of collusion is estimated to be higher.https://iee.rihu.ac.ir/article_314_fecf20ecf0ee1eebb1d3cd08d03ec30f.pdfcollusion degreemarginal processing costprofit marginoligopolyoligopsony |
| spellingShingle | Majid Ahmadian Mohamd ali Motafaker Azad Determinants of Profitability in Oligopoly and Oligopsony Markets جستارهای اقتصادی collusion degree marginal processing cost profit margin oligopoly oligopsony |
| title | Determinants of Profitability in Oligopoly and Oligopsony Markets |
| title_full | Determinants of Profitability in Oligopoly and Oligopsony Markets |
| title_fullStr | Determinants of Profitability in Oligopoly and Oligopsony Markets |
| title_full_unstemmed | Determinants of Profitability in Oligopoly and Oligopsony Markets |
| title_short | Determinants of Profitability in Oligopoly and Oligopsony Markets |
| title_sort | determinants of profitability in oligopoly and oligopsony markets |
| topic | collusion degree marginal processing cost profit margin oligopoly oligopsony |
| url | https://iee.rihu.ac.ir/article_314_fecf20ecf0ee1eebb1d3cd08d03ec30f.pdf |
| work_keys_str_mv | AT majidahmadian determinantsofprofitabilityinoligopolyandoligopsonymarkets AT mohamdalimotafakerazad determinantsofprofitabilityinoligopolyandoligopsonymarkets |