Firm Turnover and Market Structure: Concentration Statistics as a Misleading Practice
This paper examines the importance of firm mobility in the Canadian manufacturing sector during the 1970s. Its asks whether turnover measures yield different information about market structure than traditional measures of concentration. Two types of mobility statistics are used. The first focuses on firm entry and exit; the second measures mobility within the set of continuing firms. These measures depict a system undergoing substantial change -- in contrast to concentration statistics. We conclude that mobility statistics offer a richer and more diverse set of characteristics for measuring market structure.
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