@article{Weerahewa:205938,
      recid = {205938},
      author = {Weerahewa, Jeevika},
      title = {Estimating Market Power of Tea Processing Sector},
      journal = {Sri Lankan Journal of Agricultural Economics},
      address = {2003},
      number = {1381-2016-115757},
      pages = {15},
      year = {2003},
      abstract = {It is generally believed that the food processing sector  can exercise market power on raw material producers and  final consumers. The objective of this study was to assess  the degree of oligopoly and oligopsony power of the  tea-processing sector. A partial equilibrium model was  developed for the world market for tea, treating India,  Kenya and Sri Lanka as raw tea producers and Canada, United  Kingdom and the United States of America as tea consumers.  An imperfectly competitive tea-processing sector was  incorporated in the model allowing conjectural variation  elasticity to represent the degree of market power. The  model was econometrically estimated using the two-stage  least square estimation procedure. Results of the  econometric estimation show that all the market power  estimates are statistically significant. The conjectural  elasticity values in the input market are 0.0516, 0.0015  and 0.1657 for India, Kenya and Sri Lanka respectively. The  conjectural variation elasticity in the output market is  0.1273. The elasticity of supply with respect to own prices  are 0.0791, 0.2268 and 0.2060 for India, Kenya and Sri  Lanka respectively. The elasticity of demand with respect  to own prices are –0.4720, –0.1556 and –0.1237 for Canada,  United Kingdom and the United States respectively. The  resulting Learner Index for Sri Lanka is very small  indicating that Sri Lankan tea producers are not  significantly exploited by tea processors.},
      url = {http://ageconsearch.umn.edu/record/205938},
      doi = {https://doi.org/10.22004/ag.econ.205938},
}