• Media type: E-Article
  • Title: Price Rigidity and Industrial Concentration: Evidence from the Indonesian Food and Beverages Industry
  • Contributor: Setiawan, Maman; Emvalomatis, Grigorios; Oude Lansink, Alfons
  • Published: Wiley, 2015
  • Published in: Asian Economic Journal, 29 (2015) 1, Seite 61-72
  • Language: English
  • DOI: 10.1111/asej.12047
  • ISSN: 1351-3958; 1467-8381
  • Origination:
  • Footnote:
  • Description: This paper investigates the relationship between industrial concentration and price rigidity in the Indonesian food and beverages industry. A Cournot model of firm behavior is used in which prices adjust according to a partial adjustment mechanism. The model is applied to panel data of the Indonesian food and beverages industry over the period 1995–2006. The results suggest that industrial concentration has a positive effect on percentage price changes. Furthermore, the speed of price adjustment is higher when the per unit cost of production rises.