Incentive Compatibility in Estimating Oligopoly Power in Domestic Fluid-milk Market
- 한국농식품정책학회
- 농업경영.정책연구
- 농업경영·정책연구 36권 1호
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2009.0380 - 99 (20 pages)
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This paper estimates the degree of oligopoly power of domestic dairy processors for white fluid milk in the Korean dairy market. As Corts criticized, the NEIO estimate could be biased. Hence, this paper considers an incentive compatibility condition to check whether there is a bias in the estimate obtained by the NEIO approach. If there is an incentive for firms in the market to deviate from the current market structure, the market power parameter could be changed. To reflect the incentive compatibility condition, this paper uses seasonal demand shifts in the domestic fluid-milk market.
Ⅰ. Introduction
Ⅱ. Theoretical model
Ⅲ. Identifying strategy using the NEIO technique and its limitations
Ⅳ. Empirical results
Ⅴ. Checking the incentive compatibility constraint
Ⅵ. Conclusion
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