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Competition and Productivity: A Review of Evidence

Author

Listed:
  • Thomas J. Holmes
  • James A. Schmitz

    () (Department of Economics, University of Minnesota, Minneapolis, Minnesota 55455, Federal Reserve Bank of Minneapolis, and National Bureau of Economic Research
    Research Department, Federal Reserve Bank of Minneapolis, Minneapolis, Minnesota 55480-0291)

Abstract

Does competition spur productivity? And if so, how does it accomplish this? These have long been regarded as central questions in economics. This article reviews the literature that makes progress toward answering both questions.

Suggested Citation

  • Thomas J. Holmes & James A. Schmitz, 2010. "Competition and Productivity: A Review of Evidence," Annual Review of Economics, Annual Reviews, vol. 2(1), pages 619-642, September.
  • Handle: RePEc:anr:reveco:v:2:y:2010:p:619-642
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    File URL: http://www.annualreviews.org/doi/abs/10.1146/annurev.economics.102308.124407
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    Keywords

    monopoly; innovation; market power;

    JEL classification:

    • L11 - Industrial Organization - - Market Structure, Firm Strategy, and Market Performance - - - Production, Pricing, and Market Structure; Size Distribution of Firms
    • L13 - Industrial Organization - - Market Structure, Firm Strategy, and Market Performance - - - Oligopoly and Other Imperfect Markets
    • L25 - Industrial Organization - - Firm Objectives, Organization, and Behavior - - - Firm Performance
    • L61 - Industrial Organization - - Industry Studies: Manufacturing - - - Metals and Metal Products; Cement; Glass; Ceramics
    • L81 - Industrial Organization - - Industry Studies: Services - - - Retail and Wholesale Trade; e-Commerce
    • L92 - Industrial Organization - - Industry Studies: Transportation and Utilities - - - Railroads and Other Surface Transportation

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