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Abstract
This paper extends Bresnhan's market power measure, which can be estiamted exonometrically, to marketing firms that have potential for price discrimination. An investigation of Japanese soyabean markets during 1973-78 using the model reveals an episode in which Japanese importers exercised some market power for several years after the US soyabean embargo of June 1973. An analysis of welfare loss and exchange rate transmission is also presented.