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Concentration and Market Size: Lower Bound Estimates for the Brazilian Industry

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  • Marcelo Resende

Abstract

The paper estimates the lower bound for market concentration taking as reference the framework advanced by Sutton (1991). Quantile regression methods were considered in the context of the Brazilian manufacturing industry in 2005 and separate estimates were obtained for exogenous and endogenous sunk cost industries. The evidence favoured a convergence of the concentration lower bound towards zero in exogenous sunk costs industries in line with previous empirical evidence for developed countries. In ontrast, the magnitude was similar in the case of endogenous sunk cost industries what might reflect the low technological effort in that emerging economy.

Suggested Citation

  • Marcelo Resende, 2008. "Concentration and Market Size: Lower Bound Estimates for the Brazilian Industry," CESifo Working Paper Series 2441, CESifo.
    • Handle: RePEc:ces:ceswps:_2441
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    References listed on IDEAS

    as
    1. Gorg, Holger & Strobl, Eric & Ruane, Frances, 2000. "Determinants of Firm Start-Up Size: An Application of Quantile Regression for Ireland," Small Business Economics, Springer, vol. 14(3), pages 211-222, May.
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    3. Maria Letizia Giorgetti, 2003. "Lower Bound Estimation – Quantile Regression and Simplex Method: An Application to Italian Manufacturing Sectors," Journal of Industrial Economics, Wiley Blackwell, vol. 51(1), pages 113-120, March.
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    Keywords

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    JEL classification:

    • L11 - Industrial Organization - - Market Structure, Firm Strategy, and Market Performance - - - Production, Pricing, and Market Structure; Size Distribution of Firms

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