Ranking Iran's Monopolistic Industry Based on Fuzzy TOPSIS Method



The aim of this paper is to identify the industrial markets coordinates with the help of Herfindahl–Hirschman concentration index, cost disadvantage ratio (CDR) index and Comanor and Wilson's economies of scale index (MES). The paper also attempts to recognize Iran's monopolistic industries through the Fuzzy TOPSIS method presented by Chen (2000) under triangular fuzzy membership function. Given the findings raised from three market structure components (HHI; CDR and MES) it is confirmed that the most monopolistic industries respectively include: Manufacturers of tobacco products, manufacturers of games and toys, manufacturers of industrial process control equipment and tanning and dressing of leather, manufacturers of luggage, handbags, saddlery and harness, dressing and dyeing of fur. The Entry barrier criterion has also had an essential role in expanding the monopolies in Iranian markets


Article Title [Persian]

رتبه بندی صنایع انحصاری ایران بر مبنای TOPSIS فازی

Abstract [Persian]

در این مقاله از شاخص تمرکز هرفیندال هیرشمن(HHI)، شاخص نسبت مضار هزینه‌ای (CDR) و شاخص صرفه‌های مقیاس کومانور و ویلسون(MES) در راستای شناخت مختصات بازارهای صنعتی استفاده شده است. همچنین در تحقیق حاضر از تکنیک TOPSIS فازی ارائه شده توسط چن (2000) و تابع عضویت مثلثی فازی در راستای شناسایی صنایع انحصاری ایران استفاده شده است. یافته‌های تحقیق مؤید آن است که انحصاری‌ترین صنایع ایران با توجه به سه مؤلفه ساختاری بازار(HHI، CDR و MES) به‌ترتیب عبارتند از: تولید محصولات توتون و تنباکو– سیگار، تولید وسایل بازی و اسباب‌بازی، تولید تجهیزات کنترل عملیات صنعتی و تولید کیف و چمدان و محصولات مشابه. همچنین نتایج این تحقیق بیانگر آن است که مانع ورود نقش اساسی در گسترش انحصارات در بازارهای ایران به‌همراه داشته است

Keywords [Persian]

  • ساختار بازار
  • منطق فازی
Azar, A. & Faraji, H. (2001).The science of fuzzy management. 4thedition.Tehran:Mehraban Publications. (in Persian.(

Asgharpour, M.J.(2004).Multiple decision making. 3rdedition, Tehran: University of Tehran. (in Persian.(

Ashenfelter, O.& Sullivan, D.(1987). Nonparametric tests of market structure: An application to the cigarette industry. Journal of Industrial Economics, 35, 483-98.

Azzam, A. (1997). Measuring market power and cost-efficiency effects of industrial concentration. Journal of Industrial Economics, 45 (4),377-86.

Azzam, A. &Pagoulatos, E. (1990). Testing oligopolistic and oligopolistic behavior: An application to the U.S. meat packing industry. Journal of Agricultural Economics, 41, 362–370.

Azzam, A., Lopez, R.A.&Liron-Espana, C. (2002). Market power and/or efficiency: A structural approach. Review of Industrial Organization, 20, 115–126.

Asiabani, N., Hossainzade, M., Dorandish, A. & Karami, O. (2012). Investigating the trend of production and trade of cotton with the global market structure. First International Conference on the Knowledge, Industry and Trade of Cotton, Gorgan, Iran.

Bhattacharya, M. & Bloch, H. (2000). The dynamics of industrial concentration in Australian manufacturing. International Journal of Industrial Organization, 18, 1181–1199.

Bhattacharya, M. (2002). Industrial concentration and competition in Malaysian manufacturing. Applied Economics, 34, 2127-2134.

Basu, S.& Fernald, J. G.(1995). Are apparent productive spillovers a figment of specification Error?Journal of Monetary Economics, 36, 165-88.

Berndt, E. R. & Wood, D. O. (1986). U.S. manufacturing output and factor input price and quantity series 1908-194 7 and 194 7-1981.Massachusetts Institute of Technology, Energy Laboratory Working Paper, 86-01 OWE.

Bresnahan, T. F.(1982). The Oligopoly solution concept is identified. Economics Letters, 10, 87-92.

Bresnahan, T. F. (1989). Studies of industries with market power In Richard Schmalensee and Robert Willig (eds.), Handbook of industrial organization, New York: North Holland.

Domowitz, I., Hubbard, G. R.& Petersen, B. C.(1988). Market structure and cyclical fluctuations in U. S. manufacturing.Review of Economics and Statistics, 70, 55-66.

Diana, C. H. & Esfahani, A. (2006). Modelling market power in the Indonesian palm oil industry, Agricultural and Resource Economics Faculty of Agriculture, Food and Natural Resources, The University of Sydney, www.Usyd.edu.au.

Ebadi, J. & ShahikiTash, M. N.(2004).Investigating the structure of export industrial markets of selected goods.Iranian Journal of Trade Studies (IJTS), 31, 33-58. (in Persian.(

Ebadi, J. & ShahikiTash, M. N. (2004). Investigating the impact of agricultural markets structure on the Iranian foreign exchange earnings, Iranian Journal of Trade Studies (IJTS), 67, 61-90. (in Persian).

Hall, R. E. (1988). The relationship between price and marginal cost in U.S. industry. Journal of Political Economy, 96, 921-47.

Hakura, D. S. (1998).The effects of European economic integration on the profitability of industry.International Monetary Fund, Working Paper, WP/98/85.

Hossaini, M. &Parme, Z. (2010).Evaluating monopoly, competition, and concentration in the Iranian poultry meat and eggs.Journal of Knowledge and Development, 30, 188- 214.

Hatirli, A. S., Ozkan,B. & Jones, E. (2006). Application of measuring market power and cost efficiency in the milk.The Journal of Food and Science and Technology, 17, 367-372.

Iveta, Repkova (2012).Market power in the Czech banking sector.Journal of Competition, 4, 143-155.

Jourli, M., Kashanizade, B. & Mardani, H. (2008).Evaluating the concentration level of electricity market under the power planet integration condition in Iran. Journal of Energy Economics Studies, 16, 165-183.

Kanyenga, M., &Managisoni (2009). Assessing market concentration in the Tobacco industry of Malawi, Uinversity of Malawi, Bunda College of Agriculture, http://community.eldis.org/.59ee3fb9/.

Kahraman C., Cevik S., Ates N.Y. &Gulbay, M. (2007).Fuzzy multi-criteria evaluation of industrial robotic systems. Computers & Industrial Engineering, 52, 414-433.

KhodadadKashi, F.(2000).Monopoly, competition and concentration in the industrial markets of Iran.Iranian Journal of Trade Studies, (IJTS), 15, 75-96. (in Persian).

KhodadadKashi, F. (2001). Appraising power and volume of monopoly activates in the Iran Economy. Institute Trade Studies Researches, 52-81. (in Persian).

KhodadadKash, F.& ShahikiTash, M.N., (2005). Degree of competition in the global market of selected agricultural products. Agricultural Economics, 63, 135-164. (in Persian).

KhodadadKashi, F.&ShahikiTash, M. N.(2007). Scope and extent of competition law with respect to the economic structure (Case Study of Iran). Journal of Public Law, 23, 143-179. (in Persian).

Kasman, A. D. &Trugutlu, E. V. (2008). Competitive conditions in the Turkish non-Life insurance industry. Review of Middle East Economics and Finance, 4 (1), 81-96.

Li, H. &Luo, G. (2008).Industry consolidation and price in the US linerboard Industry. Journal of Forest Economics, 14, 93-115.

Lau, L. J. (1982). On identifying the degree of competitiveness from industry Price and output data. Economics Letters, 10, 93-9.

Martin, S. (1988). The measurement of profitability and the diagnosis of market power. International Journal of Industrial Organization, 6, 301–321.

Mugume, A. D.  (2008). Market structure and performance in Uganda's banking industry. Working Paper, Faculty of Economics and Management Markerere University, 1-67.

Molkan, J. (2011). Examining the effect of concentration ratio and economies of scale on the profitability in the Iranian industries.Iranian Journal of Economic Research, 58, 99-126. (in Persian).

Perloff, J. M, (1991). Econometric analysis of imperfect competition and implications for trade research, working paper, qt46w1j22d, series California Agricultural Experiment Station, Department of Agricultural and Resource Economics. http://ideas.repec.org/p/cdl/agrebk/qt46w1j22d.html.

Panzar, J. C. &Rosse, J. N.(1987).Testing for "monopoly" equilibrium. The Journal of  Industrial Economics, 35, 443-56.

Shapiro, M.(1987).Measuring market power in U. S. industry. National Bureau of Economic Research Working, Paper No. 2212. http://www.nber.org.

Saving, T. R.(1970). Concentration and the degree of monopoly, International Economic Review, 11,139-146.

Schroeter, J. R.(1988). Estimating the degree of market power in the beef packing industry.Review of Economics and Statistics, 70, 158–162.

Seelanatha, L. A. (2010). Market structure, efficiency and performance of  banking industry in Sri Lanka. Banks and Bank system, 5, 20-31.

Sadraei Johari, A. & Manochehri, M. (2012).Dynamics of industrial concentration in the Iranian manufacturing industries. Journal of Economic Research and Policies, 63, 105-132. (in Persian).

Yen, J.&Langari, R.(1999).Fuzzy logic intelligence, control, and information. New Jersey: Prentice Hall Publishing Company.


Yildirim, H. & Philippatos, G. (2006). Restructuring, merging, competitiveness in Latin America banking industry. Journal of Forest Economics, 16(12),62-85