Please use this identifier to cite or link to this item: https://hdl.handle.net/10419/192116 
Year of Publication: 
1994
Series/Report no.: 
Discussion Papers No. 132
Publisher: 
Statistics Norway, Research Department, Oslo
Abstract: 
The hypothesis of market power in the Norwegian primary aluminium industry is tested using plant-level panel data. Economies of scale are found to be present, and Norwegian aluminium plants charge a procyclical price-cost margin that significantly exceeds zero. Consequently, the simple competitive hypothesis is rejected. The hypothesis that products are differentiated is not rejected, since several plants are found to charge a price permanently over the world market price. A decline in industry concentration internationally, which is assumed to increase the degree of competition, has no significant effect on the price-cost margins of Norwegian plants.
Subjects: 
Market power
Differentiated products
Aluminium industry
JEL: 
C23
D21
D43
L61
Document Type: 
Working Paper
Document Version: 
Digitized Version

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