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Investigating the structure of the intercomplex market of ethylene-making petrochemicals based on the Cournot model
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Ali Javan jafari *   , Amir Kargar , Mohammad javad Fadaei |
| imam sadiq university |
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Abstract: (110 Views) |
One of the most important goals in revising the intercommunity market structure in Iran's petrochemical industry is to create a competitive environment. This research is based on the data of 2019 by evaluating the level of competition between the country's petrochemical companies, including Maroon, Jam, Amirkabir, Tabriz, Ariasassol, Bandaramam and Kavian in the country's inter-complex ethylene market. Using the Corneau model, which is used to measure monopoly in the market, the present research first identifies marginal companies and strategic companies with the market share index, and in order to achieve the Corneau equilibrium, it seeks to maximize profit and minimize the cost of each company. pay; This effort will continue until reaching the equilibrium point of the Cournot model. The findings of the current research indicate that the three major companies in the production of ethylene petrochemical Jam, Ariassol and Maron in the country have a higher market share and are decisive in the market. In the following, the Lerner index was also calculated for these petrochemical companies and it shows that Ariassol Petrochemical Company with its market share and high Lerner index has a high influence and as a result, it can be said that all petrochemical companies in the country have a Lerner index above 0.5. It is a sign of their high market power. As a suggestion, the government can reduce the degree of monopoly in this market by investing and encouraging more producers to enter this market, as well as applying feed control policy. |
Article number: 3 |
| Keywords: intercommunity market, market power, Cournot model, competition, Lerner index |
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Full-Text [PDF 889 kb]
(38 Downloads)
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Type of Study: Research |
Subject:
Special
Received: 2023/11/13 | Accepted: 2024/01/26 | Published: 2024/03/18
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