IDEAS home Printed from https://ideas.repec.org/
MyIDEAS: Log in (now much improved!) to save this article

Advertising, Concentration, and Profitability: The Simultaneity Problem

Author Info

Listed author(s):
  • Stephen Martin

Abstract

This article examines the identification of a system of equations which seeks to explain industrial profitability, concentration, and advertising intensity. We specify a concentration equation which reflects a dynamic adjustment to a long-run level which depends on the nature of entry conditions. The specification of the concentration equation is seen to be critical to the identification of the profitability equation. We test the model against a sample of input-output table detailed industries and find that the resulting estimates suggest the importance of avoiding the omission of relevant explanatory variables.

Download Info

If you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.

File URL: http://links.jstor.org/sici?sici=0361-915X%28197923%2910%3A2%3C639%3AACAPTS%3E2.0.CO%3B2-X&origin=repec
File Function: full text
Download Restriction: Access to full text is restricted to JSTOR subscribers. See http://www.jstor.org for details.

As the access to this document is restricted, you may want to look for a different version under "Related research" (further below) or search for a different version of it.

Article provided by The RAND Corporation in its journal Bell Journal of Economics.

Volume (Year): 10 (1979)
Issue (Month): 2 (Autumn)
Pages: 639-647

as
in new window

Handle: RePEc:rje:bellje:v:10:y:1979:i:autumn:p:639-647
Contact details of provider: Web page: http://www.rje.org

Order Information: Web: https://editorialexpress.com/cgi-bin/rje_online.cgi

Keywords:

No references listed on IDEAS
You can help add them by filling out this form.

Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.

as
in new window


Cited by:

  1. Barbara M. Roberts, "undated". "Transition and Changes in Industrial Concentration in Poland," Discussion Papers in European Economics 98/4, Department of Economics, University of Leicester.
  2. Lopez, Rigoberto A. & Bhuyan, Sanjib, 1998. "Determinants of allocative efficiency losses from oligopoly power," The Quarterly Review of Economics and Finance, Elsevier, vol. 38(1), pages 61-72.
  3. Judd, Kenneth L. & Petersen, Bruce C., 1986. "Dynamic limit pricing and internal finance," Journal of Economic Theory, Elsevier, vol. 39(2), pages 368-399, August.
  4. Jeong, Kap-Young & Masson, Robert T., 2003. "A new methodology linking concentration dynamics to current and steady-state profits:Examining Korean industrial policy during take-off," International Journal of Industrial Organization, Elsevier, vol. 21(10), pages 1489-1526, December.
  5. Matthias Greuner & David Kamerschen & Peter Klein, 2000. "The Competitive Effects of Advertising in the US Automobile Industry, 1970-94," International Journal of the Economics of Business, Taylor & Francis Journals, vol. 7(3), pages 245-261.
  6. Iqbal J. Permana & Bernadette Robiani & Taufiq Marwa & Azwardi, 2017. "An Analysis Of Structure, Behavior And Banking Performance Of Islamic Banking In Indonesia," Eurasian Journal of Economics and Finance, Eurasian Publications, vol. 5(1), pages 114-127.
  7. Chen, Jihui & Waters, George, 2017. "Firm efficiency, advertising and profitability: Theory and evidence," The Quarterly Review of Economics and Finance, Elsevier, vol. 63(C), pages 240-248.
  8. Sizhong Sun, 2014. "Foreign Entry and Firm Advertising Intensity: Evidence from China," Review of Industrial Organization, Springer;The Industrial Organization Society, vol. 45(1), pages 79-97, August.
  9. Yoon, Seok, 2004. "A note on the market structure and performance in Korean manufacturing industries," Journal of Policy Modeling, Elsevier, vol. 26(6), pages 733-746, September.
  10. Elena Podrecca, 2013. "Riforme del mercato dei prodotti e crescita della produttività. Teoria ed evidenza empirica," ECONOMIA E SOCIETÀ REGIONALE, FrancoAngeli Editore, vol. 2013(2), pages 10-41.
  11. Kim B. Clark, 1982. "Unionization and Firm Performance: The Impact on Profits, Growth and Productivity," NBER Working Papers 0990, National Bureau of Economic Research, Inc.
  12. Pilar Beneito & Paz Coscollá-Girona & María Engracia Rochina-Barrachina & Amparo Sanchis, 2015. "Competitive Pressure and Innovation at the Firm Level," Journal of Industrial Economics, Wiley Blackwell, vol. 63(3), pages 422-457, 09.
  13. Ronald W. Cotterill, 2007. "Market Definition and Market Power in the British Supermarket Industry," Food Marketing Policy Center Research Reports 098, University of Connecticut, Department of Agricultural and Resource Economics, Charles J. Zwick Center for Food and Resource Policy.
  14. Bhuyan Sanjib & McCafferty Michael, 2013. "U.S. Brewing Industry Profitability: A Simultaneous Determination of Structure, Conduct, and Performance," Journal of Agricultural & Food Industrial Organization, De Gruyter, vol. 11(1), pages 1-12, November.
  15. Sawyer, Malcolm C., 1982. "On the specification of structure-performance relationships," European Economic Review, Elsevier, vol. 17(3), pages 295-306.
  16. Co, Catherine Y., 2001. "Trade, foreign direct investment and industry performance," International Journal of Industrial Organization, Elsevier, vol. 19(1-2), pages 163-183, January.
  17. Örs, Evren, 2006. "The Role of Advertising in Commercial Banking," CEPR Discussion Papers 5461, C.E.P.R. Discussion Papers.
  18. Joshua Drucker, 2009. "Trends in Regional Industrial Concentration in the United States," Working Papers 09-06, Center for Economic Studies, U.S. Census Bureau.

This item is not listed on Wikipedia, on a reading list or among the top items on IDEAS.

Access and download statistics

When requesting a correction, please mention this item's handle: RePEc:rje:bellje:v:10:y:1979:i:autumn:p:639-647. See general information about how to correct material in RePEc.

For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: ()

If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

If references are entirely missing, you can add them using this form.

If the full references list an item that is present in RePEc, but the system did not link to it, you can help with this form.

If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your profile, as there may be some citations waiting for confirmation.

Please note that corrections may take a couple of weeks to filter through the various RePEc services.

This information is provided to you by IDEAS at the Research Division of the Federal Reserve Bank of St. Louis using RePEc data.