Patibandla, Murali (Department of International Economics and Management, Copenhagen Business School)
Abstract
This paper addresses the issue of how do domestic incumbent oligopoly firms, which functioned under the institutional conditions of protected markets and pervasive government intervention for a long period adjust to a relatively sudden change in market institutional conditions caused by market reforms in the Indian context. It focuses especially on the issue of response mechanism of local firms to competition from new entrant multinational companies (MNCs) and possible strategies of MNCs in penetrating the Indian market. It develops a conceptual framework by incorporating institutional elements into a simple sequential entry oligopoly model. This yields interesting insights into qualitative behaviour of firms in the post-reforms period. A few hypotheses drawn from the conceptual discussion are empirically tested on the basis of firm level panel data drawn from a set of Indian industries.
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Publisher Info
Paper provided by Copenhagen Business School, Department of International Economics and Management in its series Working Papers with number
7-1999.
Length: 28 pages Date of creation: 30 May 1999 Date of revision: Handle: RePEc:hhb:cbsint:1999-007
Contact details of provider: Postal: Department of International Economics and Management, Copenhagen Business School, Howitzvej 60, DK-2000 Frederiksberg, Denmark Phone: +45 3815 2515 Fax: +45 3815 2500 Web page: http://www.cbs.dk/departments/int/ More information through EDIRC
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