Demand estimation, relevant market definition and identification of market power in Turkish Beverage Industry

Download

index.pdf

Date

2010

Author

Kalkan, Ekrem

Metadata

Show full item record

Item Usage Stats

267
views

167
downloads

This dissertation aims to contribute to the field of economics of competition policy by analyzing the demand structure and the market power in the Turkish beverage industry and in the cola market in particular. First, a demand system for the beverage products has been estimated by using a multi-stage linearized Almost Ideal Demand System (AIDS). Using the own-price elasticity of cola in a SSNIP test (Small but Significant Non-Transitory Increase in Price), it is shown that cola market consists of a distinct relevant product market. Then, the demand elasticities of cola products at brand and package level have been estimated by the simple and nested logit models. Finally, the estimated demand elasticities of cola products have been used in measuring the degree of market power and predicting the effects of a hypothetical merger between Pepsi and Cola Turca by using a merger simulation technique. The results show that all cola suppliers have large price-cost margins for most of their products. Prices of the merging parties increase in average by 15 - 21% after the merger. The merger also causes the market price to increase by 16- 22% and consumer surplus to decrease by nearly 5% in average. Finally, depending on these results, the thesis recommends a stricter merger control criterion than dominance criterion for competition policy in Turkey.

Subject Keywords

Economics., Economics, Consumption.

URI

http://etd.lib.metu.edu.tr/upload/12611636/index.pdf
https://hdl.handle.net/11511/19453

Collections

Graduate School of Social Sciences, Thesis

Suggestions

OpenMETU
Core

Information frictions and the effects of news media bias on consumption / Aşçıoğlu, Mert; Voyvoda, Ebru; Department of Economics (2014) This thesis develops a model that incorporates information frictions and consumption behavior in order to explain the observations of higher volatility of consumption as well as its excess sensitivity to income in the developing countries. The information frictions in the model arise both from the information source, specified as the biased news media, and the conditions of the consumers that affect the costs they face in forming full information rational expectations. These two channels are argued to be mo...
Macroeconomic impact of workers' remittances on output growth: evidence from Turkey Yaşar, Pınar; Tansel, Aysıt; Department of Economics (2005) In this study, a demand oriented simultaneous equation macroeconometric model with a dynamic perspective is constructed in order to investigate the impact of workers̕ remittances on output growth via their effects on key macro variables such as private consumption, investment and imports for Turkey. The study covers the period of 1964-2003 on an annual basis. Results of the analysis suggest that workers̕ remittances affect output growth in a positive manner through the multiplier process. It is found that t...
Income and, consumption and saving behavior of Turkish households Cilasun, Seyit Mümin; Kırdar, Murat G.; Department of Economics (2009) Using 2002-2006 Household Budget Survey, this thesis investigates the income, consumption and saving dynamics of Turkish households within a life-cycle theory framework by employing cross-sectional analyses and cohort techniques. Cohort techniques are used not only to analyze these variables, but also to investigate the demographics and components of income and consumption. The analyses are deepened by dividing the sample according to the location of the households (urban-rural areas), and significant diffe...
Direct foreign investment in Turkish manufacturing industry Koldaş, Tevfik; Şenses, Fikret; Department of Economics (2005) This study deals with direct foreign investment (DFI) in Turkish manufacturing industry with two main objectives: First, the reasons of the failure of Turkish economy in attracting sufficiently high levels of DFI is analysed as compared to the experiences other developing countries that have been successful on this count. Second, the impact of DFI in Turkish manufacturing industry is analysed in terms of export, employment, and technology contribution as well as the comparative behaviour of domestic and DFI...
Determinants of current account deficits in industrialized and developing coıuntries: an empirical investigation Kaya Bahçe, Seçil Aysed; Kaya Bahçe, Seçil Aysed; Department of Economics (2005) This study aims to analyze the determinants of the current account deficits for a broad samples of industrial and developing countries for the period 1984-2001. Using a dynamic panel data estimation procedure, we try to unfold the impact of several macro economic and institutional variables on current account deficits. In this context, we also examine the validity of Feldstein Horioka puzzle and its relevance to the current account imbalances. Results show that better governance, a more sophisticated financ...

Citation Formats

E. Kalkan, “Demand estimation, relevant market definition and identification of market power in Turkish Beverage Industry,” Ph.D. - Doctoral Program, Middle East Technical University, 2010.