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The dynamics of market structure and market size in two health services industries

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  • Timothy Dunne
  • Shawn D. Klimek
  • Mark J. Roberts
  • Yi Xu

Abstract

The relationship between the size of a market and the competitiveness of the market has been of long-standing interest to IO economists. Empirical studies have used the relationship between the size of the geographic market and both the number of firms in the market and the average sales of the firms to draw inferences about the degree of competition in the market. This paper extends this framework to incorporate the analysis of entry and exit flows. A key implication of recent entry and exit models is that current market structure will likely depend upon the history of past participation. The paper explores these issues empirically by examining producer dynamics for two health service industries, dentistry and chiropractic services.

Suggested Citation

  • Timothy Dunne & Shawn D. Klimek & Mark J. Roberts & Yi Xu, 2007. "The dynamics of market structure and market size in two health services industries," Working Paper 0712, Federal Reserve Bank of Cleveland.
  • Handle: RePEc:fip:fedcwp:0712
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    References listed on IDEAS

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    Citations

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    Cited by:

    1. Timothy Dunne & Shawn D. Klimek & Mark J. Roberts & Daniel Yi Xu, 2013. "Entry, exit, and the determinants of market structure," RAND Journal of Economics, RAND Corporation, vol. 44(3), pages 462-487, September.
    2. John Haltiwanger & Ron Jarmin & C. J. Krizan, 2010. "Mom-and-Pop Meet Big Box: Complements or Substitutes?," NBER Chapters,in: Cities and Entrepreneurship National Bureau of Economic Research, Inc.
    3. Daniel H. Weinberg, 2013. "Talent Recruitment and Firm Performance: The Business of Major League Sports," Working Papers 13-54r, Center for Economic Studies, U.S. Census Bureau, revised Feb 2014.
    4. Barseghyan, Levon & DiCecio, Riccardo, 2011. "Entry costs, industry structure, and cross-country income and TFP differences," Journal of Economic Theory, Elsevier, vol. 146(5), pages 1828-1851, September.
    5. repec:cen:wpaper:13-54 is not listed on IDEAS

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    Keywords

    Markets ; Industrial organization ; Service industries;

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