Stationarity test in geographic markets: An application to South African milk markets
Date
2007
Authors
Boshoff W.H.
Journal Title
Journal ISSN
Volume Title
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Abstract
The paper focuses on the delineation of geographic markets in competition analysis, investigating the use of tests of price co-movement in the market definition exercise. To this end, the first part is devoted to a conceptual framework for market definition (adopted from Haldrup (2003)). Thereafter, a variety of price tests are explored that can be applied within the quantitative part of the framework. Similar to Forni (2004), the paper emphasizes the use of stationarity tests (that is, tests for the existence of unit roots) - illustrating their application to a recent competition investigation in South Africa. © 2007 The Author. Journal compilation © 2007 Economic Society of South Africa.
Description
Keywords
commodity market, competition (economics), market development, milk, monopoly, price dynamics, quantitative analysis, testing method, Africa, South Africa, Southern Africa, Sub-Saharan Africa
Citation
South African Journal of Economics
75
1
75
1