Non-competitive market behaviour in the international coking coal market

n this paper, a primal dual programming model of international coking coal trade is constructed to test for non-competitive market behaviour. World tr ade in 1996 is simulated under perfect competition and various non-competit ive market structures. Statistical tests are used to compare simulated trad e flows with actual data. Assuming Cournot-Nash behaviour, an all consumer oligopsony market structure is preferred to alternative models. Under an al l consumer oligopsony world coking coal prices and trade are lower than und er perfect competition. Under an oligopsonistic structure welfare gains fro m productivity increases in Australian coal mines might largely accrue to c oal buyers. (C) 1999 Published by Elsevier Science.