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Effects of Market‐Share and Antimerger Policies on the Fluid Milk‐Processing Industry
Author(s) -
Kilmer Richard L.,
Hahn David E.
Publication year - 1978
Publication title -
american journal of agricultural economics
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 1.949
H-Index - 111
eISSN - 1467-8276
pISSN - 0002-9092
DOI - 10.2307/1239935
Subject(s) - market share , market share analysis , market structure , distribution (mathematics) , industrial organization , market analysis , markov chain , business , economics , market concentration , microeconomics , market microstructure , marketing , order (exchange) , finance , mathematical analysis , mathematics , machine learning , computer science
The effects of merger restriction policies and market‐share restriction policies on the structure of the Ohio fluid milk‐processing industry are compared and contrasted within an intertemporal production distribution model. Individual firm size constraints are predicated on the transition probabilities of a Markov Chain. Merger restrictions are found to be less disruptive of industry structure. However, market share is a more effective tool for controlling concentration. The appropriate combination of merger‐market share policies must be based on an analysis of market performance on a market‐by‐market basis.