Market integration and market concentration in horizontally differentiated industries
This paper derives the impact of market integration on equilibrium firm size and market concentration in horizontally differentiated industries. We show that market concentration (measured by the number of firms) can rise as a consequence of market integration if firms engage in RDcompetition. We also demonstrate that whether concentration occurs or not depends on the RDproduction function and on consumer preferences. This result implies that the welfare effects of market integration are not unambiguously positive.
Year of publication: |
2005
|
---|---|
Authors: | Eckel, Carsten |
Institutions: | Volkswirtschaftliche Fakultät, Ludwig-Maximilians-Universität München |
Saved in:
Saved in favorites
Similar items by person
-
Wage bargaining and multinational firms
Eckel, Carsten, (2009)
-
Globalization and specialization
Eckel, Carsten, (2008)
-
Strategic privatization in developing countries
Bjorvatn, Kjetil, (2011)
- More ...