IDEAS home Printed from
   My bibliography  Save this article

Corporate Diversification and Market Structure


  • Charles H. Berry


Views differ regarding the structural implications of diversification by large industrial corporations. As yet, there is little definitive empirical evidence. This paper, piecing together data from a variety of sources, seeks to test the proposition that this diversification has tended to strengthen the market position of leading firms in already concentrated industries. It finds the opposite. The projected market share of leading firms is shown to be reduced by the entry of large corporations. The more concentrated the entered industry, the greater the reduction. The paper also demonstrates the presence of barriers insulating the market position of leading firms in concentrated industries from the competition of entering smaller firms.

Suggested Citation

  • Charles H. Berry, 1974. "Corporate Diversification and Market Structure," Bell Journal of Economics, The RAND Corporation, vol. 5(1), pages 196-204, Spring.
  • Handle: RePEc:rje:bellje:v:5:y:1974:i:spring:p:196-204

    Download full text from publisher

    File URL:
    File Function: full text
    Download Restriction: Access to full text is restricted to JSTOR subscribers. See for details.

    As the access to this document is restricted, you may want to search for a different version of it.

    References listed on IDEAS

    1. Baron, David P, 1970. "Price Uncertainty, Utility, and Industry Equilibrium in Pure Competition," International Economic Review, Department of Economics, University of Pennsylvania and Osaka University Institute of Social and Economic Research Association, vol. 11(3), pages 463-480, October.
    2. Sandmo, Agnar, 1971. "On the Theory of the Competitive Firm under Price Uncertainty," American Economic Review, American Economic Association, vol. 61(1), pages 65-73, March.
    3. Steinar Ekern & Robert Wilson, 1974. "On the Theory of the Firm in an Economy with Incomplete Markets," Bell Journal of Economics, The RAND Corporation, vol. 5(1), pages 171-180, Spring.
    Full references (including those not matched with items on IDEAS)


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

    Cited by:

    1. Di Giannatale, Paolo & Passarelli, Francesco, 2014. "Integration Contracts and Asset Complementarity: Theory and Evidence from US Data," MPRA Paper 57575, University Library of Munich, Germany.
    2. Mary L Streitwieser, 1990. "The Extent and Nature of Establishment Level Diversification in Sixteen U.S. Manufacturing Industries," Working Papers 90-8, Center for Economic Studies, U.S. Census Bureau.
    3. Ding, John Y. & Caswell, Julie A., 1991. "A FRAMEWORK FOR ANALYSIS OF ALTERNATIVE RESTRUCTURING STRATEGIES EMPWYED BY LARGE FOOD MANUFACTURERS IN THE 1980s," Working Papers 116101, Regional Research Project NE-165 Private Strategies, Public Policies, and Food System Performance.
    4. Cynthia A. Montgomery, 1994. "Corporate Diversificaton," Journal of Economic Perspectives, American Economic Association, vol. 8(3), pages 163-178, Summer.

    More about this item


    Access and download statistics


    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:rje:bellje:v:5:y:1974:i:spring:p:196-204. 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: (). General contact details of provider: .

    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.

    We have no references for this item. You can help adding them by using 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 RePEc Author Service 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.

    IDEAS is a RePEc service hosted by the Research Division of the Federal Reserve Bank of St. Louis . RePEc uses bibliographic data supplied by the respective publishers.