POLICY ANALYSIS IN AN IMPERFECTLY COMPETITIVE MARKET: A CONJECTURAL VARIATIONS MODEL FOR THE FOOD MANUFACTURING INDUSTRY

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Abstract

The effects of government policies are analyzed in a conjectural variations model of U.S. food manufacturing. The policy elasticities of the perfectly competitive model are valid predictors of policy effects irrespective of the type of oligopoly. Changes in the degree of competition may alter the magnitude of the policy elasticities. Keywords: firm behavior, market structure, imperfect competition, conjectural variations model, policy analysis, food manufacturing

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WP 1990-10 July 1990
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1990-07-01
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Charles H. Dyson School of Applied Economics and Management, Cornell University
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