We compare nonparametric and nonstructural market power tests using data from the cigarette manufacturing industry. Tests are implemented to examine both monopoly and monopsony power exertion by cigarette manufacturers. Results indicate that market power in the tobacco industry, previously...

Monopsony power by cigarette manufacturers in procuring domestic and imported tobacco is investigated using a nonparametric method previously developed by Love and Shumway. Their test is extended to assess monopsony market power in multiple input markets. Results indicate that cigarette...