EconPapers    
Economics at your fingertips  
 

Concentration and Market Power

Leslie Hannah and John Kay
Additional contact information
Leslie Hannah: Emmanuel College

Chapter 2 in Concentration in Modern Industry, 1977, pp 10-22 from Palgrave Macmillan

Abstract: Abstract Many economists think of monopoly and competition as two polar cases, with the real world lying somewhere in between, and the degree of concentration measures whether a particular industry lies closer to one extreme or the other. The closer an industry is to the monopolistic end of the spectrum the more monopolistic characteristics will be observed, the higher prices will be relative to costs, the greater the resulting resource misallocation and welfare losses. This view has some plausibility, but it is much too vague to be considered a useful economic theory or to provide a satisfactory basis for empirical work. (This has not, however, prevented the proliferation of empirical studies in this area more or less devoid of theoretical underpinning). We must look more carefully at the ways in which high concentration might affect the relationship between prices and costs.

Keywords: Nash Equilibrium; Market Share; Small Firm; Large Firm; Modern Industry (search for similar items in EconPapers)
Date: 1977
References: Add references at CitEc
Citations:

There are no downloads for this item, see the EconPapers FAQ for hints about obtaining it.

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:pal:palchp:978-1-349-02773-6_2

Ordering information: This item can be ordered from
http://www.palgrave.com/9781349027736

DOI: 10.1007/978-1-349-02773-6_2

Access Statistics for this chapter

More chapters in Palgrave Macmillan Books from Palgrave Macmillan
Bibliographic data for series maintained by Sonal Shukla () and Springer Nature Abstracting and Indexing ().

 
Page updated 2025-04-01
Handle: RePEc:pal:palchp:978-1-349-02773-6_2