Is the price-cost margin affected by the market concentration? Evidence from the Czech food and beverages industry*

The paper investigates the relationship between the market concentration and the price-cost margin in the Czech food processing industry during 2003-2014. Estimated econometric models with Fixed Effects supported hypothesis assuming the positive impact of the market concentration on the price-cost margin controlling for productivity. The increase in the productivity was associated with the increase of the pricecost margins. Based on the results, policy makers should promote market competition in the food processing industry, for example through the reduction of entry barriers. Another option worth consideration is to support R&D activities potentially leading to market transformation and increase in efficiency.


Issue Date:
2017-2017-2017
Publication Type:
Journal Article
ISSN:
1804-1205
Language:
English
Published in:
Business and Economic Horizons (BEH), Volume 13, Issue 2
Page range:
256-269
JEL Codes:
L11; L66




 Record created 2017-11-06, last modified 2017-11-06

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