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The determinants of industry concentration: two new empirical regularities

Lasse B. Lien and Nicolai J. Foss
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Lasse B. Lien: Department of Strategy and Management, Norwegian School of Economics and Business Administration, Bergen, Norway, Postal: Department of Strategy and Management, Norwegian School of Economics and Business Administration, Bergen, Norway

Managerial and Decision Economics, 2009, vol. 30, issue 8, pages 503-511

Abstract: This paper reports two new empirical regularities concerning industry concentration. First, concentration levels closely correlate in related industries. Second, the correlation is moderated by the degree of relatedness between the industries. These regularities are derived from the Trinet database, using a survivor-based measure of relatedness. We argue that these previously overlooked relations may be explained in terms of (1) 'spillover effects' between industries and (2) life cycle factors. Copyright © 2009 John Wiley & Sons, Ltd.

Date: 2009

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