S. Bhuyan et Ra. Lopez, OLIGOPOLY POWER AND ALLOCATIVE EFFICIENCY IN US FOOD AND TOBACCO INDUSTRIES, Journal of agricultural economics, 49(3), 1998, pp. 434-442
This paper computed oligopoly-induced allocative efficiency losses in
38 US food and tobacco manufacturing industries using conduct, demand
and cost parameters estimated with a New Empirical Industrial Orgazisa
tion (NEIO) approach Allocative efficiency loss estimates in these ind
ustries amounted to $15.2 billion or over five per cent of sales for 1
987. Statistical tests showed that these losses are generally higher t
han previous estimates, possibly due to the allowance of non-constant
marginal costs and revised estimates of demand elasticities and conduc
t.