The Impact of Market Power on Soybean Price in Indonesia

I Ketut Arnawa, I Made Tamba, Ratya Anindita


The purpose of this study is to analyze the impact of the market power on soybeans price. This study uses data from time series (1989-2008) were analyzed by the model approach of oligopoly Appelbaum - Schroeter. The study found that market power have a significant impact on the increase in prices in the market of soybeans, the market power have a considerable impact on the increase in prices to the wholesale entry soybeans industry, but relatively little impact on the rise in prices of soybeans products processed as industrial production. Therefore, the policies of prices established by the Government has to take into account the forces of the market, pricing policies will be less effective in elasticity conjectural is relatively high, demand is highly inelastic, and the market is the proper functioning of the policy.


Keywords: Marketing, soybean, market power, industry, conjectural elasticity



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