In this article we estimate and test for the degree of oligopoly power and economies of scale in forty food and tobacco industries using the New Empirical Industrial Organization (NEIO) framework and four-digit SIC data. Lerner indices and elasticities of scale are compared throughout the entire...

This article quantifies the importance of market structure variables in determining the allocative efficiency losses from oligopoly power in the food and tobacco industries. Empirical findings indicate that these losses are likely to be higher in markets characterized by high R&D and advertising...