Is there a 'change in efficiency theory'?
A standard result in oligopoly models is that the more efficient firms have larger market shares. The main question being answered in this paper is: 'if a firm increases (decreases) its relative efficiency does it increase (decrease) its market share?'. We show that, in two widely used models where more efficient firms have larger equilibrium market shares, it is possible to have a firm getting relatively less (more) efficient than its rivals and, at the same time, increasing (decreasing) its market share.
Volume (Year): 10 (2003)
Issue (Month): 3 ()
|Contact details of provider:|| Web page: http://www.tandfonline.com/CIJB20 |
|Order Information:||Web: http://www.tandfonline.com/pricing/journal/CIJB20|
References listed on IDEAS
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- Demsetz, Harold, 1973. "Industry Structure, Market Rivalry, and Public Policy," Journal of Law and Economics, University of Chicago Press, vol. 16(1), pages 1-9, April.
- Dobson, Paul W & Waterson, Michael, 1997. "Countervailing Power and Consumer Prices," Economic Journal, Royal Economic Society, vol. 107(441), pages 418-30, March.
When requesting a correction, please mention this item's handle: RePEc:taf:ijecbs:v:10:y:2003:i:3:p:337-345. 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: (Michael McNulty)
If references are entirely missing, you can add them using this form.