Testing the Competitive Environment and the Persistence of Profits Hypotheses

Testing the Competitive Environment and the Persistence of Profits Hypotheses In the present paper I examine Brozen's (1970, 1971a, b, c, 1982) Competitive Environment Hypothesis and Mueller's (1977) Persistence of Profits Hypothesis in the Greek manufacturing industries between 1958 and 1984. The analysis reveals a positive (market power) association between past and current price-cost margins, although a considerable scrambling in the ranks of price-cost margins takes place over time. A high concentration and high barriers to entry sub-sample of markets examined, showed a general reduction in concentration, barriers to entry and a mobility in price-cost margins ranks, indicating that disciplinary competitive forces are also at work within manufacturing markets. http://www.deepdyve.com/assets/images/DeepDyve-Logo-lg.png Review of Industrial Organization Springer Journals

Testing the Competitive Environment and the Persistence of Profits Hypotheses

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Publisher
Kluwer Academic Publishers
Copyright
Copyright © 1997 by Kluwer Academic Publishers
Subject
Economics; Industrial Organization; Microeconomics
ISSN
0889-938X
eISSN
1573-7160
D.O.I.
10.1023/A:1007744519391
Publisher site
See Article on Publisher Site

Abstract

In the present paper I examine Brozen's (1970, 1971a, b, c, 1982) Competitive Environment Hypothesis and Mueller's (1977) Persistence of Profits Hypothesis in the Greek manufacturing industries between 1958 and 1984. The analysis reveals a positive (market power) association between past and current price-cost margins, although a considerable scrambling in the ranks of price-cost margins takes place over time. A high concentration and high barriers to entry sub-sample of markets examined, showed a general reduction in concentration, barriers to entry and a mobility in price-cost margins ranks, indicating that disciplinary competitive forces are also at work within manufacturing markets.

Journal

Review of Industrial OrganizationSpringer Journals

Published: Sep 29, 2004

References

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