TESTING FOR MONOPSONY POWER IN MULTIPLE INPUT MARKETS: A NONPARAMETRIC APPROACH WITH APPLICATION TO CIGARETTE MANUFACTURING

Monopsony power by cigarette manufacturers in procuring domestic and imported tobacco is investigated using a nonparametric method previously developed by Love and Shumway. Their test is extended to assess monopsony market power in multiple input markets. Results indicate that cigarette manufacturers exert significant monopsony power in the domestic tobacco market and exert little monopsony power in the international tobacco market.

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Year of publication:	1998
Authors:	Raper, Kellie Curry ; Love, H. Alan
Institutions:	Department of Agricultural Economics, Texas A&M University
Subject:	market power \| tobacco \| nonparametric \| monopsony. \| Agribusiness

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Extent:	application/pdf
Series:	Faculty Paper Series.
Type of publication:	Book / Working Paper
Notes:	The text is part of a series Department of Agricultural Economics>Faculty Paper Series Number 23966
Source:	RePEc - Research Papers in Economics

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