The identification of market exogeneity and market dominance by tests instead of assumption: an application to Indian material
Palaskas, T.B.; Harriss White, B.
Journal of International Development 8(1): 111-123
ISSN/ISBN: 0954-1748 DOI: 10.1002/(sici)1099-1328(199601)8:1<111::aid-jid271>3.0.co;2-v
For research on market prices the central market is normally identified either by looking at population data, the volume and directions of flows of commodities, or at nodes on transport networks, or by spotting it as the physical centre of regulatory intervention. This may not be the safest way to proceed if the geographical flows of a commodity among the domestic markets do not provide strong evidence about the spatial direction of price causation.