Please use this identifier to cite or link to this item: https://hdl.handle.net/10419/243144 
Authors: 
Year of Publication: 
2021
Series/Report no.: 
ZÖSS Discussion Paper No. 88
Publisher: 
Universität Hamburg, Zentrum für Ökonomische und Soziologische Studien (ZÖSS), Hamburg
Abstract: 
This paper argues that the case of product differentiation of concentrated markets (i.e., innovation competition) is one where production per unit of profit of non-financial corporations is lower than in competitive mass production and profit share is not an increasing function of capacity utilisation. Rather the desired excess capacity is higher compared since the break-even point where total costs and revenues equalize tends to be lower. The argument is supported with descriptive annual data for the period 1947-2019 in the USA.
Subjects: 
product differentiation
market structure
capacity utilisation
profits
JEL: 
D24
E12
L11
Document Type: 
Working Paper

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