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The determinants of industry concentration: two new empirical regularities

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  • Lasse B. Lien

    (Department of Strategy and Management, Norwegian School of Economics and Business Administration, Bergen, Norway)

  • Nicolai J. Foss

Abstract

This paper reports two new empirical regularities concerning industry concentration. First, concentration levels closely correlate in related industries. Second, the correlation is moderated by the degree of relatedness between the industries. These regularities are derived from the Trinet database, using a survivor-based measure of relatedness. We argue that these previously overlooked relations may be explained in terms of (1) 'spillover effects' between industries and (2) life cycle factors. Copyright © 2009 John Wiley & Sons, Ltd.

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  • Lasse B. Lien & Nicolai J. Foss, 2009. "The determinants of industry concentration: two new empirical regularities," Managerial and Decision Economics, John Wiley & Sons, Ltd., vol. 30(8), pages 503-511.
    • Handle: RePEc:wly:mgtdec:v:30:y:2009:i:8:p:503-511
    DOI: 10.1002/mde.1466
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    Cited by:

    1. Lasse B. Lien & Peter G. Klein, 2013. "Can the Survivor Principle Survive Diversification?," Organization Science, INFORMS, vol. 24(5), pages 1478-1494, October.

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