Wiendiyati, Nuhfil Hanani, Ratya Anindita, Syafrial
This paper identifies the market power role in Indonesia beef industry. It adopted New Empirical Industrial Organization (NEIO) approach to measure conjectural elasticity as a reflection of market power level to get oligopoly/oligopsony strength index to reflect both the collusion force level to determine the purchase price and sales price at beef market. Study result shows that a conjectural elasticity and oligopoly and oligopsony index value of beef market in Indonesia is quite high. It indicates that beef market is dominated by collusive market power from competitive market power. In addition, market power has positive and significant effect to determine beef price at consumer level. © 2015 AENSI Publisher All rights reserved.
Brawijaya University, Indonesia; Brawijaya University, Department of Agribusiness, Indonesia
