Market Structure Conduct Performance (Scp)
Market Structure Conduct Performance (SCP) Hypothesis Revisited using Stochastic Frontier Efficiency Analysis
Seanicaa Edwards 204 Lloyd-Ricks, West Wing Dept of Agricultural Economics MSU, Mississippi State, MS-39762 Phone: (662) 325 7984; Fax: (662) 325 8777 E-mail: see3@.msstate.edu
Albert J. Allen 215 G Lloyd-Ricks, West Wing Dept of Agricultural Economics MSU, Mississippi State, MS-39762 Phone: (662) 325 2883; Fax: (662) 325 8777 E-mail: allen@agecon.msstate.edu Saleem Shaik 1 215 E Lloyd-Ricks, West Wing Dept of Agricultural Economics MSU, Mississippi State, MS-39762 Phone: (662) 325 7992; Fax: (662) 325 8777 E-mail: shaik@agecon.msstate.edu
Selected Paper prepared for presentation at the American Agricultural Economics Association Annual Meeting, Long Beach, California, July 23-26, 2006
Copyright 2005 by Seanicaa Edwards, Albert J. Allen and Saleem Shaik. All rights reserved. Readers may make verbatim copies of this document for non-commercial purposes by any means, provided that this copyright notice appears on all such copies.
1
Corresponding and Senior Author
2
Market Structure Conduct Performance (SCP) Hypothesis Revisited using Stochastic Frontier Efficiency Analysis
Abstract Use of efficiency measures as a proxy for performance to test the market structureconduct-performance (SCP) hypothesis is explored. Utilizing Battese and Coelli specification, we estimate stochastic frontier production function and SCP equations with output and efficiency measures as endogenous variables. An empirical application to U.S. trucking carries over the period 1994-2003 with emphasis on the agricultural commodity and refrigerated food products carriers is examined. Results reveal that the variables average haul, average load and market concentration significantly affected the efficiency of firms with 2-8 number of years within each firm.
Market Structure Conduct Performance (SCP) Hypothesis Revisited using Stochastic Frontier Efficiency
Seanicaa Edwards 204 Lloyd-Ricks, West Wing Dept of Agricultural Economics MSU, Mississippi State, MS-39762 Phone: (662) 325 7984; Fax: (662) 325 8777 E-mail: see3@.msstate.edu
Albert J. Allen 215 G Lloyd-Ricks, West Wing Dept of Agricultural Economics MSU, Mississippi State, MS-39762 Phone: (662) 325 2883; Fax: (662) 325 8777 E-mail: allen@agecon.msstate.edu Saleem Shaik 1 215 E Lloyd-Ricks, West Wing Dept of Agricultural Economics MSU, Mississippi State, MS-39762 Phone: (662) 325 7992; Fax: (662) 325 8777 E-mail: shaik@agecon.msstate.edu
Selected Paper prepared for presentation at the American Agricultural Economics Association Annual Meeting, Long Beach, California, July 23-26, 2006
Copyright 2005 by Seanicaa Edwards, Albert J. Allen and Saleem Shaik. All rights reserved. Readers may make verbatim copies of this document for non-commercial purposes by any means, provided that this copyright notice appears on all such copies.
1
Corresponding and Senior Author
2
Market Structure Conduct Performance (SCP) Hypothesis Revisited using Stochastic Frontier Efficiency Analysis
Abstract Use of efficiency measures as a proxy for performance to test the market structureconduct-performance (SCP) hypothesis is explored. Utilizing Battese and Coelli specification, we estimate stochastic frontier production function and SCP equations with output and efficiency measures as endogenous variables. An empirical application to U.S. trucking carries over the period 1994-2003 with emphasis on the agricultural commodity and refrigerated food products carriers is examined. Results reveal that the variables average haul, average load and market concentration significantly affected the efficiency of firms with 2-8 number of years within each firm.
Market Structure Conduct Performance (SCP) Hypothesis Revisited using Stochastic Frontier Efficiency