IDEAS home Printed from https://ideas.repec.org/a/oup/jcomle/v5y2009i3p517-536..html
   My bibliography  Save this article

The Dominant Firm Revisited

Author

Listed:
  • Timothy J. Tardiff
  • Dennis L. Weisman

Abstract

This paper presents a framework for evaluating whether a firm lacks dominance in a particular market despite manifesting relatively high market shares. We show that demand complementarities and high price–cost margins combine with multi-market participation to reduce the significance of market share in drawing inferences about dominance. We further show the equivalence between this multi-market measure of market power and the critical elasticity for the dominant firm. These findings suggest that the use of traditional (single-market) measures of market power commonly used to infer dominance can lead policymakers to maintain regulatory oversight when market forces are sufficient to provide the requisite degree of “competitive” discipline.

Suggested Citation

  • Timothy J. Tardiff & Dennis L. Weisman, 2009. "The Dominant Firm Revisited," Journal of Competition Law and Economics, Oxford University Press, vol. 5(3), pages 517-536.
    • Handle: RePEc:oup:jcomle:v:5:y:2009:i:3:p:517-536.
    as

    Download full text from publisher

    File URL: http://hdl.handle.net/10.1093/joclec/nhp002
    Download Restriction: Access to full text is restricted to subscribers.
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Erik BOHLIN & Kevin W. CAVES & Jeffrey A. EISENACH, 2014. "Mobile Wireless Performance in the EU and the US: Implications for Policy," Communications & Strategies, IDATE, Com&Strat dept., vol. 1(93), pages 35-58, 1st quart.
    2. Daigyo Seo & Allen Featherstone & Dennis Weisman & Yuan Gao, 2010. "Market Consolidation and Productivity Growth in U.S. Wireline Telecommunications: Stochastic Frontier Analysis vs. Malmquist Index," Review of Industrial Organization, Springer;The Industrial Organization Society, vol. 36(3), pages 271-294, May.
    3. Thomas Hazlett & Dennis Weisman, 2011. "Market Power in US Broadband Services," Review of Industrial Organization, Springer;The Industrial Organization Society, vol. 38(2), pages 151-171, March.
    4. Sumit K. Majumdar, 2011. "Cross Subsidization And Telecommunications Sector Wages," Annals of Public and Cooperative Economics, Wiley Blackwell, vol. 82(1), pages 1-24, March.

    More about this item

    JEL classification:

    • K21 - Law and Economics - - Regulation and Business Law - - - Antitrust Law
    • L43 - Industrial Organization - - Antitrust Issues and Policies - - - Legal Monopolies and Regulation or Deregulation
    • L51 - Industrial Organization - - Regulation and Industrial Policy - - - Economics of Regulation
    • L96 - Industrial Organization - - Industry Studies: Transportation and Utilities - - - Telecommunications

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:oup:jcomle:v:5:y:2009:i:3:p:517-536.. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no bibliographic references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Oxford University Press (email available below). General contact details of provider: https://academic.oup.com/jcle .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.