Using the structure-conduct-performance approach it can be argued that diversification raises barriers to entry which have a positive influence on the profitability of firms. This study examines the effect of product diversification on the profitability of 25 German food industry sectors from...

The increasing concentration of retailing in many countries (particularly in Europe) is a cause for concern for competition authorities. In a formal model, we argue that retailer market power influences upstream firms` incentives to introduce new products. On the basis of a survey of German food...

This paper analyses the flexibility decision of firms. In particular we (a) ask whether the flexibility choice is influenced by market structure (concentration, market growth, ...), (b) compare the firms' actual choices with welfare maximising flexibility decisions (c) investigate the...