| 来源类型 | Discussion paper |
| 规范类型 | 论文 |
| 来源ID | DP14009 |
| DP14009 Market Size and Competition: A "Hump-Shaped" Result | |
| Iris Grant; Heiner Schumacher; Johannes Van Biesebroeck | |
| 发表日期 | 2019-09-18 |
| 出版年 | 2019 |
| 语种 | 英语 |
| 摘要 | An active empirical literature estimates entry threshold ratios, introduced by Bresnahan and Reiss (1991), to learn about the impact of firm entry on the strength of competition. These ratios measure the increase in minimum market size needed per firm to sustain one additional firm in the market. We show that there is no monotonic relationship between a change in the entry threshold ratio and a change in the strength of competition or in the price-cost margin. In the standard homogenous goods oligopoly model with linear or constant elasticity demand, the ratio is hump-shaped in the number of active firms, increasing at first and only when additional firms enter it gradually decreases and converges to one. Empirical applications should use caution and interpret changes in the entry threshold ratios as indicative of changes in competition only from the third entrant onwards. |
| 主题 | Industrial Organization |
| 关键词 | Competition Market entry Market size Entry threshold ratio |
| URL | https://cepr.org/publications/dp14009 |
| 来源智库 | Centre for Economic Policy Research (United Kingdom) |
| 资源类型 | 智库出版物 |
| 条目标识符 | http://119.78.100.153/handle/2XGU8XDN/542891 |
| 推荐引用方式 GB/T 7714 | Iris Grant,Heiner Schumacher,Johannes Van Biesebroeck. DP14009 Market Size and Competition: A "Hump-Shaped" Result. 2019. |
| 条目包含的文件 | 条目无相关文件。 | |||||
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