Please use this identifier to cite or link to this item: http://hdl.handle.net/10419/117321
Authors: 
Kopp, Thomas
Bümmer, Bernhard
Year of Publication: 
2015
Series/Report no.: 
EFForTS Discussion Paper Series 9
Abstract: 
While traders of agricultural products are known to often exercise market power, this power has rarely been quantified for developing countries. In order to derive a measure, we estimate the traders' revenue functions and calculate the Marginal Value Products directly from them. We subsequently find determinants affecting their individual market power. An exceptional data set with detailed information on the business practices of rubber traders in Jambi, Indonesia is employed. Results show that market power at the traders' level exists and is substantial. This market power is amplified in situations of extreme remoteness, and weakens with increasing market size.
Subjects: 
Trader Survey
Market Power
Lerner Index
Marginal Value Products
Indonesia
JEL: 
F14
Q13
L14
Persistent Identifier of the first edition: 
Creative Commons License: 
http://creativecommons.org/licenses/by-nd/4.0/
Document Type: 
Working Paper

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