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Oligopsony/oligopoly power and factor market performance
Author(s) -
Chang YangMing,
Tremblay Victor J.
Publication year - 1991
Publication title -
managerial and decision economics
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 0.288
H-Index - 51
eISSN - 1099-1468
pISSN - 0143-6570
DOI - 10.1002/mde.4090120509
Subject(s) - oligopoly , lerner index , economics , market power , herfindahl index , index (typography) , microeconomics , price elasticity of demand , elasticity (physics) , factor market , perfect competition , price elasticity of supply , industrial organization , cournot competition , monopoly , materials science , world wide web , computer science , composite material
This paper is concerned with the economic performance of factor markets in an oligopsony/ oligopoly setting. Firm arid industry indexes are developed to measure factor market price distortions caused by exerted oligopsony/oligopoly power. These measures indicate that the elasticity of output demand, the elasticity of input supply, and the input and output conjectural elasticities determine the degree of non‐competitive performance in factor markets. It is also shown that under special conditions the firm index equals the Lerner index and the industry index equals the Herfindahl‐Hirschman index.