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

Kalkan, Ekrem
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.


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...
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...
Analysis of the growth dynamics in Turkish commercial shipbuilding sector and its prospects
Sartaş, Murat; Erdil, Erkan; Department of Economics (2010)
This thesis aims to analyze the growth dynamics of the Turkish commercial shipbuilding industry between 1992 and 2008. It tests the hypotheses whether each of the 14 variables identified in the literature are valid in explaining the growth of Turkish commercial shipbuilding industry between 1992 and 2008 and if there is a di erence in the importance of these variables through utilizing secondary data as well as the results of the semi structured interviews made with 16 experts and managers representing all ...
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...
Environmental impact of customs union agreement with EU on Turkey's trade in manufacturing industry
Akbostancı Özkazanç, Elif; Tunç, Gül İpek (Informa UK Limited, 2008-01-01)
In this study, we analyse Turkey's manufacturing industry trade by estimating sectoral import and export demand equations for 1980-2000. The study aims to understand whether the trade in the manufacturing industry complies with pollution haven hypothesis, and whether the free trade environment provided by the customs union (CU) agreement altered the trade pattern of the clean and dirty industries. Results of our econometric models have shown that while CU positively affects the import demand, it does not ha...
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.