We investigate the empirical usefulness of a new measure of the degree of competition in a market, proposed by Boone … competition, while the new relative profits measure performs better. Using accounting data on UK firms we investigate the …

Competition has been modelled in the literature in a number of ways. What do these different parametrizations of … competition have in common? For instance, it turns out that it is not always the case that a rise in competition reduces price … cost margins, industry wide profits or concentration. All parametrizations of competition, considered here, have two …