Discussion Papers no. 132
Testing for market power in the Norwegian primary aluminium industry
The hypothesis of market power in the Norwegian primary aluminium industry is tested using plant-level panel data. Economies of scale are found to be present, and Norwegian aluminium plants charge a procyclical price-cost margin that significantly exceeds zero. Consequently, the simple competitive hypothesis is rejected. The hypothesis that products are differentiated is not rejected, since several plants are found to charge a price permanently over the world market price. A decline in industry concentration internationally, which is assumed to increase the degree of competition, has no significant effect on the price-cost margins of Norwegian plants.
Om publikasjonen
- Tittel
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Testing for market power in the Norwegian primary aluminium industry
- Ansvarlig
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Kjersti-Gro Lindquist
- Serie og -nummer
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Discussion Papers no. 132
- Utgiver
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Statistics Norway, Research Department
- Emne
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Discussion Papers
- Antall sider
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33
- Målform
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Engelsk
- Om Discussion Papers
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Discussion papers comprise research papers intended for international journals and books. A preprint of a Discussion Paper may be longer and more elaborate than a standard journal article as it may include intermediate calculations, background material etc.
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