Investigation of The Market Power Structure in The PistachioDomestic Market in Iran

Abdolahi Ezzatabadi, M.

doi:10.22067/jead2.v1389i3.7731

Investigation of The Market Power Structure in The PistachioDomestic Market in Iran

Document Type : Research Article

Author

M. Abdolahi Ezzatabadi

Iran's Pistachio Research Institute

https://doi.org/10.22067/jead2.v1389i3.7731

Abstract

Abstract
Efficacy of encouraging and punishing policies of government in different markets is related to market power. Study of market behavior is also important for efficient structuring of tools such as commodity exchanges and cooperatives. In this study, market power structure of pistachio domestic market in Iran was investigated. Sample was 343 pistachio producers and 252 pistachio traders from 5 provinces; Kerman, Fars, Khorasan, Tehran and Yazd. Two methods of Structure- Conduct – Performance Paradigm (SCPP) and New Empirical Industrial Organization (NEIO) were used for measuring market power. Results indicated that competitive market is proved in level of local buyers according to structure, conduct and performance investigations. But, for pistachio exporters, although market structure is competitive, conduct and performance show oligopsony behavior. The results, also, show that in some situation (local buyers' level); Structure- Conduct – Performance Paradigm (SCPP) is acceptable. But it is not acceptable in all levels. Thus, it is suggested to conduct and performance criteria should be considered in measuring pistachio market power.

Keywords

Pistachio market

market power

Structure – Conduct – Performance Paradigm (SCPP)

New Empirical Industrial Organization (NEIO)