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Margins, Concentration and Oligopolistic Interdependence *
Author(s) -
DIXON ROBERT,
GUNTHER ALAN
Publication year - 1986
Publication title -
economic record
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 0.365
H-Index - 42
eISSN - 1475-4932
pISSN - 0013-0249
DOI - 10.1111/j.1475-4932.1986.tb00895.x
Subject(s) - collusion , oligopoly , herfindahl index , degree (music) , index (typography) , yield (engineering) , economics , microeconomics , market concentration , econometrics , industrial organization , market structure , cournot competition , computer science , physics , materials science , world wide web , acoustics , metallurgy
In this paper we examine the relationship between margins, elasticities of demand and the Hirschman‐Herfindahl index of concentration for Australian manufacturing. Our main aim is to estimate the degree of collusion in various manufacturing sectors in the years 1968‐69, 1972‐73 and 1977‐78. There appear to be marked differences in the apparent degree of collusion between industries. It is argued that once sub‐optimization is allowed the Cowling‐Waterson model will yield biased estimates of the degree of collusion.