Profit, entry and changes in concentration

Research output: Contribution to journalArticle

22 Citations (Scopus)

Abstract

The simultaneity between profit, entry, and changes in concentration is examined. The sample includes 481 observations on 4-digit industries over the years 1972-1977 and 1977-1982. Results show that profits respond positively to entry barriers and initial concentration. Net entry responds positively to initial profits and responds negatively to entry barriers. Concentration moves toward its steady-state level, but the rate of adjustment is very slow. The competitive process, left on its own, does not seem to move quickly toward equilibrium.

Original languageEnglish (US)
Pages (from-to)185-203
Number of pages19
JournalInternational Journal of Industrial Organization
Volume11
Issue number2
DOIs
StatePublished - Jun 1993

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Profitability
Profit
Industry
Barriers to entry
Simultaneity

ASJC Scopus subject areas

  • Industrial relations
  • Aerospace Engineering
  • Economics and Econometrics
  • Economics, Econometrics and Finance (miscellaneous)
  • Strategy and Management
  • Industrial and Manufacturing Engineering

Cite this

Profit, entry and changes in concentration. / Rosenbaum, David I.

In: International Journal of Industrial Organization, Vol. 11, No. 2, 06.1993, p. 185-203.

Research output: Contribution to journalArticle

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