Files
Abstract
A plethora of approaches to modeling market power has been reported in the literature.
These can be broadly divided into one-side and two-side behavioral models. This paper
uses versions of these models to develop a theoretical framework to test market power in
the output and input markets in the Indonesian cooking oil production chain. The
dynamic Lerner Index is also proposed as a reinforcing approach to measuring the degree
of market power, and its consequential impacts. The implications of the analysis for
further research will be explored.