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Abstract

This study examined whether processors and retailers have market power in the Finnish dairy chain. Both the dairy processing and the retail sector are highly concentrated in Finland, and market imperfections in the chain are not well known. The results indicate that the retailers have market power over the consumers in the retail market but the processing market is competitive. According to the results, the retailers employ full mark-up in the retail market. It is emphasised that market power in the Finnish dairy chain should be further studied with different approaches to gain more evidence for market power.

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