This study provides the model that first synthesizes strategic group
theory with the New Empirical Industrial Organization (NEIO) approach in
the international trade analysis, and uses the annual group data (1953-1988) from the U.S. brewing industry with two strategic groups (national
producers and regional producers) in the presence of growing import
competition. The main goal of study is to examine the impact of import
and strategic group competition on strategic group behavior and market
power in the U.S. brewing industry. Using the conjectural variation
technique under the profit maximization assumption, the model estimates
directly conjectural elasticities and the Lerner indexes incorporating
firm behavior in competing with rivals from imports, and inside and
outside each strategic group. The thesis shows the main following
conclusions. Inside the group, national and regional brewers behave
like Bertrand-type competitors and regional firms are more competitive
than national firms. In the cross-group rivalry, national firms expect
a cooperative response from regional brewers and regional firms expect
an aggressive response from national producers. Holding possibly a
sufficient niche market, import competition does not affect the behavior
and market power of national and regional producers. As for over-all
behavior, neither national nor regional firms behave like price-takers.
National firms exert a significantly higher degree of market power than
do regional firms, the market power of which appears to be harmed by
national brewers. However, an average brewer exercises no market power
in the industry as a whole. / Graduation date: 1997
Identifer | oai:union.ndltd.org:ORGSU/oai:ir.library.oregonstate.edu:1957/34476 |
Date | 21 June 1996 |
Creators | Nam, Kiseol |
Contributors | Tremblay, Victor J. |
Source Sets | Oregon State University |
Language | en_US |
Detected Language | English |
Type | Thesis/Dissertation |
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