MARKET POWER PERBANKAN INDONESIA

Authors

Andi Fahmi Lubis

Document Type

Article

Abstract

This study was aimed to estimate the degree of market power exercised by commercial banks incredit market in Indonesia.Model used to answered this study’s objective was Bresnahan-Lau oligopoly model that using structural equations to estimate the degree of market power.This model was using very different approach than Structure-Conduct-Performance (SCP) paradigm that commonly used in market power studies.Without using actual cost data and accounting profit, Bresnahan-Lau model was able to estimate directly the degree of market power from structural equations. The main result of this study was the degree of market power exercised by commercial banks in credit market relatively low; in other words the degree of competition in credit market in Indonesia was quite high.

Recommended Citation

Lubis, Andi Fahmi (2012) "MARKET POWER PERBANKAN INDONESIA," Bulletin of Monetary Economics and Banking: Vol. 14: No. 3, Article 9.
DOI: https://doi.org/10.21098/bemp.v14i3.358
Available at: https://bulletin.bmeb-bi.org/bmeb/vol14/iss3/9

First Page

235

Last Page

255

Creative Commons License

This work is licensed under a Creative Commons Attribution-NonCommercial 4.0 International License

Country

Indonesia

Affiliation

University of Indonesia