Journal of Economic Research (Tahghighat- E- Eghtesadi)

Journal of Economic Research (Tahghighat- E- Eghtesadi)

Evaluation of Market Power in Manufacturing Industries in Iran

Document Type : Research Paper

Author
Mohammad Nabi Shahiki Tash
University of Sistan and Baluchestan
10.22059/jte.2013.35167
Abstract
This paper using generalized Roeger's model calculated the Lerner index for Iranian active industries in 4-digit ISIC codes during the period 1995-2007. The findings indicate that the Lerner index has been between 8 to 16 percent in 38 industries among 131 ones. The index also in different industries shows that more than 50 percent of Iranian industries have monopolistic power such that they have generated a significant gap between price and marginal cost. Comparing the Lerner index with Herfindahl–Hirschman and four - firm concentration ratio indices gives this result that the industries with high concentration ratio have greater value of Lerner index so that The four-firm concentration ratio of 20 industries (among the 29 industries) has had a value more than 40.
JEL Classification: F1 ،L1،L6
Keywords
Lerner
Marginal Cost
concentration
Monopoly
Industry

  • Receive Date 15 October 2011
  • Revise Date 17 September 2013
  • Accept Date 23 April 2013