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Empirical Models of Entry and Market Structure

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Author Info
Berry, Steven
Reiss, Peter

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Abstract

This chapter surveys empirical models of market structure. We pay particular attention to equilibrium models that interpret cross-sectional variation in the number of firms or firm turnover rates. We begin by discussing what economists can in principle learn from models with homogeneous potential entrants. We then turn to models with heterogeneous firms. In the process, we review applications that analyze market structure in airline, retail, professional, auction, lodging, and broadcasting markets. We conclude with a summary of more recent models that incorporate incomplete information, "set identified" parameters, and dynamics.

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This chapter was published in: Mark Armstrong & Robert Porter (ed.) , Elsevier, chapter 29, pages 1845-1886, 2007.

This item is provided by Elsevier in its series Handbook of Industrial Organization with number 3-29.

Handle: RePEc:eee:indchp:3-29

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Related research
This chapter was published in the following book, which is listed on IDEAS:
Mark Armstrong & Robert Porter (ed.), 2007. "Handbook of Industrial Organization," Handbook of Industrial Organization, Elsevier, edition 1, volume 3, number 1, September. [Downloadable!] (restricted)
Keywords: industrial organization;

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L0 - Industrial Organization - - General

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  1. Michaela Draganska & Sanjog Misra & Victor Aguirregabiria & Pat Bajari & Liran Einav & Paul Ellickson & Dan Horsky & Sridhar Narayanan & Yesim Orhun & Peter Reiss & Katja Seim & Vishal Singh & Raphael, 2008. "Discrete choice models of firms’ strategic decisions," Marketing Letters, Springer, vol. 19(3), pages 399-416, December. [Downloadable!] (restricted)
  2. Yasuhiro Sato & Takatoshi Tabuchi & Kazuhiro Yamamoto, 2009. "Market Size and Entrepreneurship," Discussion Papers in Economics and Business 09-07, Osaka University, Graduate School of Economics and Osaka School of International Public Policy (OSIPP). [Downloadable!]
  3. Timothy Dunne & Shawn D. Klimek & Mark J. Roberts & Daniel Yi Xu, 2009. "Entry, exit and the determinants of market structure," Working Paper 0907, Federal Reserve Bank of Cleveland. [Downloadable!]
    Other versions:
  4. Heger, Diana & Kraft, Kornelius, 2008. "Barriers to Entry and Profitability," ZEW Discussion Papers 08-071, ZEW - Zentrum für Europäische Wirtschaftsforschung / Center for European Economic Research. [Downloadable!]
  5. Timothy Dunne & Shawn D. Klimek & Mark J. Roberts & Yi Xu, 2007. "The dynamics of market structure and market size in two health services industries," Working Paper 0712, Federal Reserve Bank of Cleveland. [Downloadable!]
    Other versions:
  6. Katherine Ho & Matthew Neidell, 2009. "Equilibrium effects of public goods: The impact of community water fluoridation on dentists," NBER Working Papers 15056, National Bureau of Economic Research, Inc. [Downloadable!] (restricted)
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