Lower Bounds of Concentration in a Small Open Economy
AbstractWe examine how Suttonâs âboundsâ approach works in a small country where industries have relatively high export and import intensities. Import competition is used as an indicator for the degree of competition in the low sunk cost industries. The bounds are estimated as stochastic frontiers, where observable industry characteristics, export intensity and entry barriers, are allowed to affect the mean and variance of the deviations from the frontier. In accordance with the theory, high R&D intensity industries have a lower bound for concentration, which is higher than that for low sunk cost intensity industries. For high advertising industries the theory does not hold as well. High import competition leads to a higher bound in the low sunk cost industries.
Download InfoIf you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.
Bibliographic InfoArticle provided by Springer in its journal Review of Industrial Organization.
Volume (Year): 32 (2008)
Issue (Month): 1 (February)
Contact details of provider:
Web page: http://www.springerlink.com/link.asp?id=100336
Concentration; R&D; Stochastic frontiers; Sunk costs; L11; L13; L60;
Other versions of this item:
- Ilmakunnas, Pekka, 2006. "Lower bounds of concentration in a small open economy," MPRA Paper 1859, University Library of Munich, Germany.
- L13 - Industrial Organization - - Market Structure, Firm Strategy, and Market Performance - - - Oligopoly and Other Imperfect Markets
- L60 - Industrial Organization - - Industry Studies: Manufacturing - - - General
- L11 - Industrial Organization - - Market Structure, Firm Strategy, and Market Performance - - - Production, Pricing, and Market Structure; Size Distribution of Firms
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- Sutton, John, 2007. "Market Structure: Theory and Evidence," Handbook of Industrial Organization, Elsevier.
- Wahlroos, B & Backstrom, M, 1982. "R & D Intensity with Endogenous Concentration: Evidence for Finland," Empirical Economics, Springer, vol. 7(1-2), pages 13-22.
- Symeonidis, George, 1999.
"Price Competition and Market Structure: The Impact of Cartel Policy on Concentration in the UK,"
CEPR Discussion Papers
2308, C.E.P.R. Discussion Papers.
- Symeonidis, George, 2000. "Price Competition and Market Structure: The Impact of Cartel Policy on Concentration in the UK," Journal of Industrial Economics, Wiley Blackwell, vol. 48(1), pages 1-26, March.
- Wang, Hung-Jen, 2002. "Heteroscedasticity and non-monotonic efficiency effects of a stochastic frontier model," MPRA Paper 31076, University Library of Munich, Germany.
- Catherine Matraves & Laura Rondi, 2007.
"Product Differentiation, Industry Concentration and Market Share Turbulence,"
International Journal of the Economics of Business,
Taylor and Francis Journals, vol. 14(1), pages 37-57.
- Matraves Catherine & Rondi Laura, 2005. "Product Differentiation, Industry Concentration and Market Share Turbulence," CERIS Working Paper 200514, Institute for Economic Research on Firms and Growth - Moncalieri (TO).
- Duetsch, Larry L, 1984. "Entry and the Extent of Multiplant Operations," Journal of Industrial Economics, Wiley Blackwell, vol. 32(4), pages 477-87, June.
- S. Baranzoni & P. Bianchi & L. Lambertini, 2000. "Market Structure," Working Papers 368, Dipartimento Scienze Economiche, Universita' di Bologna.
- Lyons, Bruce & Matraves, Catherine & Moffatt, Peter, 2001. "Industrial Concentration and Market Integration in the European Union," Economica, London School of Economics and Political Science, vol. 68(269), pages 1-26, February.
- Marín Uribe, Pedro Luis & Siotis, Georges, 2002. "Innovation and Market Structure: An Empirical Evaluation of the 'Bounds Approach' in the Chemical Industry," CEPR Discussion Papers 3162, C.E.P.R. Discussion Papers.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Guenther Eichhorn) or (Christopher F. Baum).
If references are entirely missing, you can add them using this form.