Application of nonparametric techniques to detect market power in the United States food processing sector.

摘要

Nonparametric procedures are employed in the analysis of market structure for the U.S. food processing sector. The framework developed adapts the concept of subjective demand and supply to derive a general test of market power. Empirical evidence suggests that six industries are monopolies only, while the remaining industries exert some market power in both the output and input sides. Furthermore, results estimate substantive welfare transfers for some industries.