Mehrzad Ebrahimi, Farhad Khodadad Kashi, Majid Ahmadian,
Volume 22, Issue 69 (4-2014)
Abstract
In this article, using Iran's Manufacturing Data during (1979-2007), we try to measure the degree of monopoly power and agreement (Collusion) in Automotive and Textile Industries. The strategic nature is the main reason to study these two industries. The study employs Conjectural Variation and Agreement Approach to evaluate monopoly power. Using SUR approach, we estimate cost function and input demands simultaneously. The results of this study indicate mutual interdependence between firms and also high degree of Agreement and high monopoly power in automotive Industry, while the degree of Agreement in Textile Industry is low