This paper presents a decomposed Poisson regression model based on count data that evaluates the size distribution, the changing number of flour mills for each size class, and the concentration of market power, simultaneously. This model also allows us to test dominant price leadership model.

What causes the structural changes in terms of number and size of flour mills in the US flour milling industry, and will the US wheat flower supply be adequate in the year 2000? Simulation results indicate that rising disposable income and declining wheat prices are the primary reasons for...