In this article, we use the recently developed stochastic frontier estimator of market power to test whether or not the Grameen Bank's lending rates are consistent with marginal cost pricing. We find that they are not and, on average, the markup is about 3% above marginal cost. However, the...

Past test of differences in economic efficiency between small and large farms in developing countries used arbitrary criteria to divide samples of farms into the two size groups. Given the inferential danger from such arbitrary groupings, this paper presents a method for conducting the...

An empirical bilateral oligopoly model is constructed to estimate the degree of dominance by the upstream and downstream industry. The model is applied to the beef slaughter and retail industries. The hypothesis of equal dominance is not rejected.