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Firm Size and Market Power in Carbonated Soft Drinks

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  • Franco Mariuzzo
  • Patrick Walsh

    ()

  • Ciara Whelan

Abstract

Sutton (1998) offers us a simple way to model firm size distributions across differentiated products industries. We analyse the implications of this approach for company markups using a structural model for a specific industry. We incorporate the complexities of multi-product (brand) companies operating with different (strategic) configurations of product characteristics and stores to estimate brand markups, using Irish AC Nielsen retail data for Carbonated Soft Drinks. As a second step we estimate that market power does not increase in companies with higher market share, controlling for other factors. This challenges a traditional mind-set. Copyright Kluwer Academic Publishers 2003

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File URL: http://hdl.handle.net/10.1023/B:REIO.0000031369.95080.9f
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Article provided by Springer in its journal Review of Industrial Organization.

Volume (Year): 23 (2003)
Issue (Month): 3 (December)
Pages: 283-299

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Handle: RePEc:kap:revind:v:23:y:2003:i:3:p:283-299
Contact details of provider: Web page: http://www.springerlink.com/link.asp?id=100336

Keywords: Company size and market power; differentiated products;

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