Measuring Market Conduct in the Taiwan Cement Industry－A Dynamic Econometric Approach

• Main Authors: Tzu-Hsuan Huang, 黃子軒
• Other Authors: Pang-Tien Lieu
• Format: Others
• Language: zh-TW
• Published: 2011
• Online Access: http://ndltd.ncl.edu.tw/handle/hd57m3

碩士 === 國立臺灣科技大學 === 企業管理系 === 99 === Because of high capital-intensity, the homogeneity of products, and domestic demand-oriented, these characteristics make the cement industry is generally considered as a highly oligopolistic industry structure. Based on the classical industrial economic theories this industry structure would lead to joint behavior. The present paper adopts the dynamic Markup Test of New Empirical Industrial Organization—NEIO (Bresnahan (1982); Lau (1982); Steen and Salvanes (1997)) to measure the competition of Taiwan cement industry. The data span 20 years (1991/2010), with 240 data points for the raw data. Empirical results indicate that the cement industry in Taiwan has some monopoly power in a short run, but it is a competitive market in a long run. Due to the output is fixed in a short run; the cement company can own monopoly power under the situation if the demand increases. However, the cement market in Taiwan was over-supply in the past years, and the utilization rate was low. In a long run, cements companies lose price bargaining power, and the cement industry becomes a competitive market.