Estimation Of Market Power In Black Carbon Industry Using NEIO Approach

Relevance of the topic of master’s thesis is due to the rather small number of empirical studies in the field of the New Empirical Industrial Organization. Applying non-classical methods of power estimation helps us to gain a broader understanding of the sources of market power of companies in the industry. This study is based on the different methods of New Empirical Industrial Organization. Objective of the study: • Estimation of market power in the industry of automobile tires production, each tire 50% consist of black carbon To reach the following objective we performed econometric regression of dependence of Lerner index on factors such as: • Distance to the consumer • Production capacity of the company • The attractiveness of the brand. The object of the study was data from 11 manufacturers of automobile tires presented to Russian consumers. Subject of research: identification of relationships between the dependent and explanatory variables, by modelling linear econometric models. The study included empirical analysis of the data per company in the industry of production of automobile tires. The results were interpreted and conclusions were made. The structure and scope of the thesis: The work consists of introduction, literature review, review of two markets: production of black carbon and tires, the empirical part, conclusion and bibliography.