This chapter reviews the literature which has developed around the `bounds approach' to market structure over the past fifteen years. The focus of this literature lies in explaining cross-industry differences in concentration, and in the size distribution of firms. One of the main ideas involved is that a study of these cross-industry differences offers a powerful way of uncovering the operation of some key competitive mechanisms.
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ReDIF This chapter was published in: Mark Armstrong & Robert Porter (ed.) , Elsevier, chapter 35, pages 2301-2368, 2007.
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