Economics at your fingertips  

When is concentration beneficial? Evidence from U.S. manufacturing

Rigoberto Lopez, Elena López () and Carmen Liron-Espana
Additional contact information
Elena López: Departamento de Economía , Universidad de Alcalá.
Carmen Liron-Espana: System Planning, ISO-NE.

No 901, Alcamentos from Universidad de Alcalá, Departamento de Economía.

Abstract: This article estimates the impact of industrial concentration on market power and cost and then links the ensuing welfare changes to market structure characteristics using a sample of 232 U.S. manufacturing industries. Empirical results indicate that further increases in concentration would enhance welfare in 70% of the industries due to widespread efficiency gains, although these would generally not be passed on to consumers. From a social standpoint, further concentration is more likely to be beneficial in industries with economies of size, high export intensity, which are engaged in consumer-oriented goods, face larger markets, and have low or moderate levels of initial concentration.

Keywords: Concentration; welfare; economies of size; market power; manufacturing (search for similar items in EconPapers)
JEL-codes: D43 D61 F12 L11 L60 (search for similar items in EconPapers)
Pages: pages 22
Date: 2009
New Economics Papers: this item is included in nep-com, nep-eff, nep-mic and nep-ure
References: View references in EconPapers View complete reference list from CitEc

Downloads: (external link) (application/pdf)

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:

Ordering information: This working paper can be ordered from

The price is free.

Access Statistics for this paper

More papers in Alcamentos from Universidad de Alcalá, Departamento de Economía. Alcalá de Henares 28803. Contact information at EDIRC.
Bibliographic data for series maintained by Juan Muro ().

Page updated 2024-05-20
Handle: RePEc:alc:alcamo:0901