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Market structure, scale economies and industry performance Author info | Abstract | Publisher info | Download info | Related research | Statistics AMIR, Rabah
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We provide an extensive and general investigation of the effecst on industry performance - profits, social welfare and price-cost margins - of exogenously changing the number of firms in Cournot markets. This includes an in-depth exploration of the well-known trade-off between competition and production efficiency. Most conventional beliefs actually require some qualifications to be valid. Under scale economies, welfare is maximized by a finite number of firms. Our results shed light on several policy debates in industrial organization, including the relationship between the Herfindahl index and social welfare, destructive competition and natural monopoly. Our analytical approach combines simplicity with generality.
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Paper provided by Université catholique de Louvain, Center for Operations Research and Econometrics (CORE) in its series CORE Discussion Papers with number
2003065.
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Date of creation: 01 Sep 2003Date of revision:
Handle: RePEc:cor:louvco:2003065Contact details of provider: Postal: Voie du Roman Pays 34, 1348 Louvain-la-Neuve (Belgium) Phone: 32(10)474321 Fax: +32 10474301 Email: Web page: http://www.uclouvain.be/core More information through EDIRC
For technical questions regarding this item, or to correct its listing, contact: (Alain GILLIS).
Keywords: Cournot oligopoly ; returns to scale ; entry ; equilibrium comparative statics ; Other versions of this item:
Paper Rahab Amir, 2000.
"Market Structure, Scale Economies, and Industry Performance ,"
CIG Working Papers
FS IV 00-08, Wissenschaftszentrum Berlin (WZB), Research Unit: Competition and Innovation (CIG).
[Downloadable!] Rabah Amir, 2000.
"Market Structure, Scale Economies and Industry Performance ,"
Discussion Papers
00-08, University of Copenhagen. Department of Economics.
[Downloadable!] Rabah Amir, .
"Market Structure, Scale Economies and Industry Performance ,"
CIE Discussion Papers
2000-03, University of Copenhagen. Department of Economics. Centre for Industrial Economics.
[Downloadable!] Find related papers by JEL classification: D43 - Microeconomics - - Market Structure and Pricing - - - Oligopoly and Other Forms of Market Imperfection D60 - Microeconomics - - Welfare Economics - - - General L13 - Industrial Organization - - Market Structure, Firm Strategy, and Market Performance - - - Oligopoly and Other Imperfect Markets L40 - Industrial Organization - - Antitrust Issues and Policies - - - General
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AMIR, Rabah & LAMBSON, Val, 1999.
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"Horizontal Mergers: An Equilibrium Analysis ,"
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Joseph Farrell and Carl Shapiro., 1988.
"Horizontal Mergers: An Equilibrium Analysis ,"
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8880, University of California at Berkeley.
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Full
references Cited by : (explanations , Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile , click on "citations" and make appropriate adjustments.)
Boone, J. & Ours, J.C. van & Wiel, H.P. van der, 2007.
"How (Not) to Measure Competition ,"
Discussion Paper
2007-32, Tilburg University, Center for Economic Research.
[Downloadable!]
Other versions:
Jan Boone & Jan van Ours & Henry van der Wiel, 2007.
"How (not) to measure competition ,"
CPB Discussion Papers
91, CPB Netherlands Bureau for Economic Policy Analysis.
[Downloadable!] Boone, J. & Ours, J.C. van & Wiel, H.P. van der, 2007.
"How (Not) to Measure Competition ,"
Discussion Paper
2007-014, Tilburg University, Tilburg Law and Economic Center.
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Boone, J., 2004.
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Other versions:
Boone, Jan, 2004.
"A New Way to Measure Competition ,"
CEPR Discussion Papers
4330, C.E.P.R. Discussion Papers.
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BELLEFLAMME, Paul & TOULEMONDE, Eric, 2007.
"Negative intra-group externalities in two-sided markets ,"
CORE Discussion Papers
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"Negative Intra-Group Externalities In Two-Sided Markets ,"
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