Is equating market share to market power a sound economic principle?
15T14:01:18Z May 2008
There is a long history of mapping market structure into market power in economic analysis. This paper addresses the validity of this principle for both homogenous and differentiated products industries. While mapping market share dominance into market power may be acceptable for homogenous goods as a rule of thumb, it is by no means a robust result. In the case of differentiated products industries, there is no theoretical foundation for such a mapping. This paper highlights the need to move towards a structural approach to assessing market power in industries.
Type of Material
Statistical and Social Inquiry Society of Ireland
Journal of the Statistical and Social Inquiry Society of Ireland
Copyright (Published Version)
2003, Statistical and Social Inquiry Society of Ireland
Subject – LCSH
Industrial organization (Economic theory)
Status of Item
This item is made available under a Creative Commons License