Abstract
The simultaneity between profit, entry, and changes in concentration is examined. The sample includes 481 observations on 4-digit industries over the years 1972-1977 and 1977-1982. Results show that profits respond positively to entry barriers and initial concentration. Net entry responds positively to initial profits and responds negatively to entry barriers. Concentration moves toward its steady-state level, but the rate of adjustment is very slow. The competitive process, left on its own, does not seem to move quickly toward equilibrium.
Original language | English (US) |
---|---|
Pages (from-to) | 185-203 |
Number of pages | 19 |
Journal | International Journal of Industrial Organization |
Volume | 11 |
Issue number | 2 |
DOIs | |
State | Published - Jun 1993 |
ASJC Scopus subject areas
- Industrial relations
- Aerospace Engineering
- Economics and Econometrics
- Economics, Econometrics and Finance (miscellaneous)
- Strategy and Management
- Industrial and Manufacturing Engineering