Under perfect competition and constant returns to scale, firms producing homogeneous products set their prices at their marginal costs which also equal their average costs. However, the departure from these standard assumptions has important implications with respects to the derived theoretical...

All economies are heterogeneous. The behaviour of the economic agents will differ in important aspects. However, in a stable environment usually strong forces shape a typical behaviour, thus many agents act similarly. On the one hand, the behaviour of agents will be much less uniform in an...

This paper investigates the link between competition and efficiency for the Hungarian corporate sector during various phases of the transition process. We employ frontier production functions for exploring differences among groups of firms, and for identifying the typical adjustment process of...

One of the major tasks facing a transition economy is to create the competitive environment of a properly functioning market economy. This paper attempts to analyze the relationship of market structure, market imperfections and corporate performance by mark-up pricing. There is clear evidence...

Under perfect competition and constant returns to scale, firms producing homogeneous products set their prices equal to marginal costs, which also equal their average costs. However, the departure from these standard assumptions has important implications with respect to the derived theoretical...

Labour market and financial information is combined to explore the effect of the quality of labour employed on the profitability of the firm. The quality of labour is measured as the portion of wage differentials that cannot be explained by the human capital model. Profitability of Hungarian...

In this paper we analyse the relationship between gravity variables and f.o.b. export unit values using Hungarian firm-product-destination data. By taking firm-product level selection into account we show that export unit values increase with distance even for particular firm-product...

Under perfect competition and constant returns to scale, firms producing homogeneous products set their prices at their marginal costs which also equal their average costs. However, the departure from these standard assumptions has important implications with respects to the derived theoretical...