Sunk Costs and Market Structure: Price Competition, Advertising, and the Evolution of Concentration
AbstractSunk Costs and Market Structure bridges the gap between the new generation of game theoretic models that has dominated the industrial organization literature recently and the traditional empirical agenda of the subject as embodied in the structure-conduct-performance paradigm developed by Joe S. Bain and his successors. Because many results turn out to depend on detailed features of the market that are difficult to measure, some observers argue that the game theory literature offers little basis for the kind of cross-industry studies that have formed the empirical base of the subject since the 1950s. Using current game-theoretic methods, John Sutton reexamines the traditional agenda. He argues that despite the "delicate" nature of many results, there are theoretical predictions that turn out to be extremely robust to reasonable changes in model specification, and these results should be taken into account when looking for statistical regularities across a broad spectrum of different industries. Sutton assembles a matrix of industry studies relating to twenty markets within the food and drink sector, in six countries—France, Germany, Italy, Japan, the United Kingdom, and the United States. He combines theory, econometric evidence, and a detailed account of the various patterns of evolution of structure found in these industries in a rigorous evaluation of the strengths and limitations of a game-theoretic approach in explaining the evolution of industrial structure.
Download InfoTo our knowledge, this item is not available for download. To find whether it is available, there are three options:
1. Check below under "Related research" whether another version of this item is available online.
2. Check on the provider's web page whether it is in fact available.
3. Perform a search for a similarly titled item that would be available.
Bibliographic InfoThis book is provided by The MIT Press in its series MIT Press Books with number 0262693585 and published in 2007.
Contact details of provider:
Web page: http://mitpress.mit.edu
industrial organization; game-theoretic models; structure-conduct-performance paradigm; sunk costs;
Find related papers by JEL classification:
- C0 - Mathematical and Quantitative Methods - - General
- B4 - Schools of Economic Thought and Methodology - - Economic Methodology
You can help add them by filling out this form.
CitEc Project, subscribe to its RSS feed for this item.
- Fan, Haichao & Lai, Edwin L.-C. & Li, Yao Amber, 2012.
"Credit Constraints, Quality, and Export Prices: Theory and Evidence from China,"
40857, University Library of Munich, Germany.
- Haichao Fan & Edwin L.-C. Lai & Yao Amber Li, 2013. "Credit Constraints, Quality, and Export Prices: Theory and Evidence from China," CESifo Working Paper Series 4370, CESifo Group Munich.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Jake Furbush).
If references are entirely missing, you can add them using this form.