@article{Dai:308829,
      recid = {308829},
      author = {Dai, Jiawa and Feng, Yuchen and Wang, Ziuqing and Yuan,  Guang},
      title = {Does higher market power necessarily reduce efficiency?  Evidence from Chinese rice processing enterprises},
      journal = {International Food and Agribusiness Management Review},
      address = {2021},
      number = {1030-2021-209},
      year = {2021},
      abstract = {This study evaluates the market power and cost efficiency  of China’s rice processing firms through a stochastic  frontier cost function. The effect of market power on cost  efficiency is tested using the two-stage ordinary least  squares method and a Hausman-Taylor type instrumental  variable. On average, firms in the industry have weak  market power but high cost efficiency, which has been  declining since the 2008 global financial crisis. Firms  with stronger market power exhibit higher cost efficiency,  contradicting the quiet life hypothesis. This effect is  more significant for firms with weaker market power after  the global financial crisis. The enhancement of market  power may help save resources for improving management and  efficiency for Chinese rice processing industry},
      url = {http://ageconsearch.umn.edu/record/308829},
      doi = {https://doi.org/10.22004/ag.econ.308829},
}