Abstract
An empirical test of oligopsony power is developed, where the conjectural and supply elasticities are estimated simultaneously. A Generalized Leontief profit function is used to represent the production structure. The test is applied to the Swedish pulpwood market. Support is found for the hypothesis that the degree of market power varies over time.
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We acknowledge a research grant from the Swedish Council for Forest and Agricultural research.
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Bergman, M.A., Brännlund, R. Measuring oligopsony power. Rev Ind Organ 10, 307–321 (1995). https://doi.org/10.1007/BF01027077
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DOI: https://doi.org/10.1007/BF01027077