Market power of the Brazilian chicken meat exports

Abstract

The objective of this paper is to measure the power market of the export industry of Brazilian chicken meat. In this sense, the proceeding of Ordinary Least Squares (OLS), since there was no problem of simultaneity, and a routine of bootstrap which makes possible to produce an estimate of the diversion-standard of the parameter that identifies the market power in the industry (λ). The results indicate that the hypotheses of perfect competition and collude (cournot) for this industry are rejected; however the value of λ which measures the power of market suggests a behavior nearer of the perfect competition than the collusion.