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Empirical Models of Entry and Market Structure

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  • Berry, Steven
  • Reiss, Peter

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.), 2007. "Handbook of Industrial Organization," Handbook of Industrial Organization, Elsevier, edition 1, volume 3, number 1, 00.
    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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    Web page: http://www.elsevier.com/wps/find/bookseriesdescription.cws_home/BS_HE/description

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    Keywords: industrial organization;

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