|
EconStor >
Zentrum für Europäische Wirtschaftsforschung (ZEW), Mannheim >
ZEW Discussion Papers >
Please use this identifier to cite or link to this item:
http://hdl.handle.net/10419/27550
|
| | |
| Title: | | A Test of the Quality of Concentration Indices  |
| Authors: | | Heger, Diana Kraft, Kornelius |
| Issue Date: | | 2008 |
| Series/Report no.: | | ZEW Discussion Papers 08-072 |
| Abstract: | | Theory predicts a positive relationship between market concentration and profitability in most scenarios. In empirical work, however, this relation is frequently not found or only a weak connection is observed. We compare the performance of concentration and market share variables, which are generated on the basis of the official industry classification, with information collected directly from firms. Information from companies on the number of competitors, their relative size and the intensity of price competition is highly significant in explaining profit levels, while none of the concentration indices performs well. Hence, the poor quality of industry data is responsible for the loose connection that is usually found between concentration and profitability. |
| Subjects: | | Concentration Indices Profitability Discrete Regression Models |
| JEL: | | L25 L13 C25 |
| Document Type: | | Working Paper |
| Appears in Collections: | | Publikationen von Forscherinnen und Forschern des ZEW ZEW Discussion Papers
|
| |
| | |
Download bibliographical data as:
BibTeX
|
| |
Share on:http://hdl.handle.net/10419/27550
|
Items in EconStor are protected by copyright, with all rights reserved, unless otherwise indicated.
|