Abstract

This paper measures the extent of Alcoa's (dominant firm) market power in the post-war US aluminium industry. An indirect procedure that combines estimation of the fringe supply elasticity, market demand elasticity, and extant market share data generates the estimate of Alcoa's residual demand elasticity which infers the firm's market power. Results show that Alcoa's market power declines with fringe's expansion.

Full Text
Published version (Free)

Talk to us

Join us for a 30 min session where you can share your feedback and ask us any queries you have

Schedule a call