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Competition and Productivity: A Review of Evidence

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  • Thomas J. Holmes
  • James A. Schmitz

    ()
    (Department of Economics, University of Minnesota, Minneapolis, Minnesota 55455, Federal Reserve Bank of Minneapolis, and National Bureau of Economic Research
    Research Department, Federal Reserve Bank of Minneapolis, Minneapolis, Minnesota 55480-0291)

Abstract

Does competition spur productivity? And if so, how does it accomplish this? These have long been regarded as central questions in economics. This article reviews the literature that makes progress toward answering both questions.

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File URL: http://www.annualreviews.org/doi/abs/10.1146/annurev.economics.102308.124407
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Bibliographic Info

Article provided by Annual Reviews in its journal Annual Review of Economics.

Volume (Year): 2 (2010)
Issue (Month): 1 (09)
Pages: 619-642

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Handle: RePEc:anr:reveco:v:2:y:2010:p:619-642

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Related research

Keywords: monopoly; innovation; market power;

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Cited by:
  1. Jeremy Greenwood & David Weiss, 2013. "Mining Surplus: Modeling James A. Schmitz's Link Between Competition and Productivity," Economie d'Avant Garde Research Reports 22, Economie d'Avant Garde.
  2. Van Reenen, John, 2011. "Does competition raise productivity through improving management quality?," International Journal of Industrial Organization, Elsevier, vol. 29(3), pages 306-316, May.
  3. Carl Shapiro, 2011. "Competition and Innovation: Did Arrow Hit the Bull’s Eye?," NBER Chapters, in: The Rate and Direction of Inventive Activity Revisited, pages 361-404 National Bureau of Economic Research, Inc.
  4. John E. Tilton, 2013. "Cyclical and Secular Determinants of Productivity in the Copper, Aluminum, Iron Ore, and Coal Industries," Working Papers 2013-11, Colorado School of Mines, Division of Economics and Business.
  5. Rousakis, Michael, 2012. "Implementation Cycles : Investment-Specific Technological Change and the Length of Patents," The Warwick Economics Research Paper Series (TWERPS) 983, University of Warwick, Department of Economics.
  6. Young Hoon Lee & Sungwon Lee, 2011. "Stochastic Frontier Models with Threshold Efficiency," Working Papers 1205, Research Institute for Market Economy, Sogang University.
  7. Ana Cecília Fieler & Marcela Eslava & Daniel Xu, 2014. "Trade, Skills, and Quality Upgrading: A Theory with Evidence from Colombia," NBER Working Papers 19992, National Bureau of Economic Research, Inc.
  8. Melitz, Marc J. & Trefler, Daniel, 2012. "Gains from Trade When Firms Matter," Scholarly Articles 10914282, Harvard University Department of Economics.

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