| Title: |
Examining the Degree of Market Power in UK’s Milk Supply Chain. |
| Authors: |
Theodoulou, Ivi1 i.theodoulou@qmul.ac.uk |
| Source: |
IUP Journal of Supply Chain Management. Dec2024, Vol. 21 Issue 4, p43-60. 18p. |
| Subject Terms: |
*Market power, *Wholesale prices, *COVID-19 pandemic, Dairy processing, Statistical significance |
| Abstract: |
This study examines the degree of market power of UK’s dairy processors. Using an updated dataset of 96 quarterly observations from 1996 to 2019, it estimates a statistically significant oligopsonistic and_oligopolistic degree of UK’s dairy processors; by calculating the well-known λ and φ using DOLS and FMOLS methods. Furthermore, the study utilizes a newly compiled dataset (2000-2023) of 284 observations to reveal a 0.30% increase (decrease) in wholesale price after a 1% increase (decrease) in input price. A significant degree of market power and incomplete cost pass-through can indicate imperfections in the market and assist in highlighting the parts of the value chain susceptible to state intervention. Taking into account the Covid-19 pandemic and Brexit periods still provides the same statistical evidence for incomplete cost pass-through along the value chain. [ABSTRACT FROM AUTHOR] |
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| Database: |
Business Source Complete |
