Several studies have estimated the welfare effects of recent changes in the European
Union's common policy on banana imports, based upon the assumption that the market
perfectly competitive. However, if the market is imperfectly competitive, predictions
about changes in banana policy may be inaccurate. The objective of this paper is
estimate the degree of market imperfection in the German market for banana imports
using dynamic methods. The hypothesis that this market is perfectly competitive is
rejected, and, in addition, the degree of market imperfection is estimated to be
using a dynamic model compared to previous static estimates.