Advanced Search
MyIDEAS: Login

Competition Policy And The Impact Of Market Structure On Companies’ Profitability

Contents:

Author Info

  • Boban Stojanović

    (University of Niš, Faculty of Economics)

  • Milan Kostić

    (University of Kragujevac, Faculty of Economics)

Registered author(s):

    Abstract

    Competition policy has a role to ensure equal conditions for all market participants. This policy enables the realization of effective competition, which is a prerequisite for economic and broader social progress. To make competition policy be of a good quality it must be based on the findings of economic science, in particular the one concerning industrial organizations and relationships among market structure, conduct and performance of companies (SCP). The analysis of these relationships is the way for identifying market imperfections and the consequences that these imperfections have on society as a whole. The paper promotes economic analysis in the field of competition through empirical evaluation of industrial organization findings. Empirical research has shown a statistically significant positive impact of the change in market share on the change of the profit margin of companies operating in the Serbian beer market. Given that this market is highly concentrated, any increase in market share increases profit margin, and vice versa. Empirical research conducted in the paper is a sound basis for the professional and economics-founded application of modern competition policy measures aimed at preventing and punishing anti-competitive behaviour.

    Download Info

    If 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.
    File URL: http://www.ses.org.rs/ekonomika-preduzeca/2013-5-6-03.pdf
    Download Restriction: no

    Bibliographic Info

    Article provided by SAE - Serbian Association of Economists in its journal SAE Journal.

    Volume (Year): (2013)
    Issue (Month): 5-6 (August)
    Pages: 325-338

    as in new window
    Handle: RePEc:srb:journl:y:2013:i:5-6:p:325-338

    Contact details of provider:
    Postal: Bulevar Mihajla Pupina 147, Dobrinjska 11, Belgrade, Serbia
    Phone: +381 11 3613-409; +381 11 2644-980
    Fax: +381 11 3629-689
    Email:
    Web page: http://www.ses.org.rs
    More information through EDIRC

    Related research

    Keywords: competition policy; market structure; market share; non-competitive behaviour; profit rate;

    Find related papers by JEL classification:

    References

    References listed on IDEAS
    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.:
    as in new window
    1. Mark Blaug, 2001. "Is Competition Such a Good Thing? Static Efficiency versus Dynamic Efficiency," Review of Industrial Organization, Springer, vol. 19(1), pages 37-48, August.
    2. Min, Sungwook & Wolfinbarger, Mary, 2005. "Market share, profit margin, and marketing efficiency of early movers, bricks and clicks, and specialists in e-commerce," Journal of Business Research, Elsevier, vol. 58(8), pages 1030-1039, August.
    3. Grabowski, Henry G & Mueller, Dennis C, 1970. "Industrial Organization: The Role and Contribution of Econometrics," American Economic Review, American Economic Association, vol. 60(2), pages 100-04, May.
    4. Caves, Richard E., 2007. "In praise of the Old I.O," International Journal of Industrial Organization, Elsevier, vol. 25(1), pages 1-12, February.
    5. Shepherd, William G, 1972. "The Elements of Market Structure," The Review of Economics and Statistics, MIT Press, vol. 54(1), pages 25-37, February.
    Full references (including those not matched with items on IDEAS)

    Citations

    Lists

    This item is not listed on Wikipedia, on a reading list or among the top items on IDEAS.

    Statistics

    Access and download statistics

    Corrections

    When requesting a correction, please mention this item's handle: RePEc:srb:journl:y:2013:i:5-6:p:325-338. See general information about how to correct material in RePEc.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Milos Stamatovic).

    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.

    If references are entirely missing, you can add them using this form.

    If the full references list an item that is present in RePEc, but the system did not link to it, you can help with 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 profile, as there may be some citations waiting for confirmation.

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