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Agricultural and Food Economics

Table 3 Lerner index (L) for the processing companies conditional to several competitor supply elasticities

From: Market structure and coherence of international cooperation: the case of the dairy sector in Malawi

Companies

Supply elasticity 2/

Shares (%)

 

0.5

0.8

1

1.5

2

2012 3/

Processor 1

0.24

0.19

0.17

0.13

0.11

22.4

Processor 2

0.04

0.03

0.03

0.02

0.02

3.8

Processor 3

0.46

0.38

0.34

0.27

0.22

39.7

Processor 4

0.05

0.04

0.03

0.03

0.02

5.1

Processor 5

0.03

0.02

0.02

0.01

0.01

2.9

Processor 6

0.28

0.23

0.20

0.16

0.13

26.1

  1. Source: Own elaboration based on information provided by dairy Malawian processors
  2. Notes
  3. 1/Market demand elasticity used for the exercise was −0.564 (highest quintile in urban areas) computed by Ecker and Qaim (2011)
  4. 2/Supply elasticity of all the competitors together
  5. 3/It refers only to the market shares on pasteurised milk sold at the retail level for 2012
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