Description:
Clove real price continuously decreased in the period 1980-1992. The objective of this research was to detect the existence of market failure phenomenon as a cause of the falling down of the clove real price, becide supply and demand interaction factors. The result indicated that there was market failure phenomenon sourced from the oligopsony (monopsony) of the clove market structure. The pure impact of the interaction of the production (as a main component of supply) and the comsumption (as a main component of demand) was able to push up the real price.