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Market power on the edge? An analysis of the German and Hungarian hog markets

Author

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  • Bakucs, Lajos Zoltán
  • Fertő, Imre
  • Hockmann, Heinrich
  • Perekhozhuk, Oleksandr

Abstract

A structural market model is estimated to analyse the impact of market power on resource allocation in the German and Hungarian pork markets. The regression analyses suggest that market power exists, although on a relatively low level. Moreover, the estimates show that processors might pursue Cournot strategies. In addition, we observe that the market power of processors in the German hog sector is decreasing, while in the Hungarian sector it is increasing. These results are consistent with the structural developments in pork production and pork processing.

Suggested Citation

  • Bakucs, Lajos Zoltán & Fertő, Imre & Hockmann, Heinrich & Perekhozhuk, Oleksandr, 2009. "Market power on the edge? An analysis of the German and Hungarian hog markets," EconStor Open Access Articles and Book Chapters, ZBW - Leibniz Information Centre for Economics, vol. 58(8), pages 337-345.
    • Handle: RePEc:zbw:espost:304783
    DOI: 10.52825/gjae.v58i8.1763
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