| 초록 |
This study aims to investigate existence of market power in the Korean food retailing industry using the new empirical industrial organization (NEIO) model. The food retailing industry in Korea becomes more concentrated as major food retail chains, such as Shinsegae, Lotte, and Tesco, open new stores aggressively and acquire existing stores from foreign retail chains, such as Carrefour and Wal-mart. CR4(four-firm concentration ratio) of the hypermarket segment increased from 28.6% in 1995 to 93.2% in 2011. In order to investigate existense of market power under this situation, the new empirical industrial organization model is estimated by the non-linear three stage estimation method. Estimation results of the model show that market power parameter is close to zero and insignificant, implying that existence of market power in Korean food retailing industry is not proved. Although the hypermarket segment is highly concentrated, the concentration ratio of total food retail marekt is about 20%. Because of this fact, it seems that empirical results do not support existence of market power in the Korean food retailing industry.
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