Review of Industrial Organization 12: 701–702, 1997. 1997 Kluwer Academic Publishers. Printed in the Netherlands. Further Comment on the Social Beneﬁts from an Effective Antimerger Policy DENNIS C. MUELLER Both Donald Dewey and F. M. Scherer have been gracious in their comments and dissents from my proposals for merger reform, and it would be ungracious of me to take great issue with them. But there are a couple of statements of fact and principle in Donald Dewey’s comment that warrant rebuttal. Professor Dewey claims that “nobody has ever satisfactorily explained why monopoly rent and market concentration should be positively correlated”. “No coherent theory has ever been advanced to justify the use of this convention.” Such positive correlations are implied by standard Cournot oligopoly models, howev- er, and with the additions of conjectural variations and the like can be regarded as reasonably coherent theories of why concentration may matter (Cowling and Waterson, 1976). On the empirical side there is a growing list of studies that ﬁnds positive relationships between market concentration or ﬁrm market shares and prices (e.g. Weiss, 1989; Evans and Kessidies, 1994). These studies remove much of the ambiguity of traditional structure/performance studies over whether concentration (market share)
Review of Industrial Organization – Springer Journals
Published: Sep 29, 2004
It’s your single place to instantly
discover and read the research
that matters to you.
Enjoy affordable access to
over 18 million articles from more than
15,000 peer-reviewed journals.
All for just $49/month
Query the DeepDyve database, plus search all of PubMed and Google Scholar seamlessly
Save any article or search result from DeepDyve, PubMed, and Google Scholar... all in one place.
Get unlimited, online access to over 18 million full-text articles from more than 15,000 scientific journals.
Read from thousands of the leading scholarly journals from SpringerNature, Elsevier, Wiley-Blackwell, Oxford University Press and more.
All the latest content is available, no embargo periods.
“Hi guys, I cannot tell you how much I love this resource. Incredible. I really believe you've hit the nail on the head with this site in regards to solving the research-purchase issue.”Daniel C.
“Whoa! It’s like Spotify but for academic articles.”@Phil_Robichaud
“I must say, @deepdyve is a fabulous solution to the independent researcher's problem of #access to #information.”@deepthiw
“My last article couldn't be possible without the platform @deepdyve that makes journal papers cheaper.”@JoseServera