When is concentration beneficial? Evidence from U.S. manufacturing
Publisher
Universidad de Alcalá. Departamento de Estadística, Estructura Económica y Organización Económica Internacional
Date
2009-01Bibliographic citation
Alcamentos, N. 0901
Keywords
Concentration
Welfare
Economies of size
Market power
Manufacturing
Document type
info:eu-repo/semantics/workingPaper
Access rights
info:eu-repo/semantics/openAccess
Abstract
This article estimates the impact of industrial concentration on market power and cost and then links the ensuing welfare changes to market structure characteristics using a sample of 232 U.S. manufacturing industries. Empirical results indicate that further increases in concentration would enhance welfare in 70% of the industries due to widespread efficiency gains, although these would generally not be passed on to consumers. From a social standpoint, further concentration is more likely to be beneficial in industries with economies of size, high export intensity, which are engaged in consumer-oriented goods, face larger markets, and have low or moderate levels of initial concentration.
Files in this item
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Alcamentos0901.pdf | 214.1Kb |
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Files | Size | Format |
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Alcamentos0901.pdf | 214.1Kb |
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