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U. S. Defense Market Concentration: An Analysis of the Period 1996–2006

In: Artificial Economics

Author

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  • Wayne Zandbergen

    (Center for Complexity Analysis)

Abstract

The defense market in the United States has undergone a significant amount of merger activity over the past 20 years. Several sources claim an increasing level of market concentration to be occurring. This paper examines several measures of the structure of the U. S. defense market from 1996–2006. Firm size is established as being Zipf distributed with exponent stable during this period. Other measures also show that significant market concentration has not resulted from these mergers. Simple computational approaches used to generate similar distributions methods do not explain this observation, suggesting that market entry conditions, firm growth rates, and diffusion of sales associated with purchased firms may be a factor in maintaining market structure.

Suggested Citation

  • Wayne Zandbergen, 2009. "U. S. Defense Market Concentration: An Analysis of the Period 1996–2006," Lecture Notes in Economics and Mathematical Systems, in: Cesáreo Hernández & Marta Posada & Adolfo López-Paredes (ed.), Artificial Economics, chapter 0, pages 43-52, Springer.
    • Handle: RePEc:spr:lnechp:978-3-642-02956-1_4
    DOI: 10.1007/978-3-642-02956-1_4
    as

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