Dinámica de la Concentración de Mercados: simulaciones Basadas en el Enfoque de Gibrat

Market Concentration Dynamics: simulations Based on the Gibrat Approach

Nerys Ramírez Mordán and Juan Rodríguez Núñez

MPRA Paper from University Library of Munich, Germany

Abstract: This document employs simulation techniques (of what kind) to attempt to replicate the market's behavior under various conditions associated with its competitive structure and the potential existence of entry barriers. The aim is to connect these simulations with theoretical and empirical findings identified in the literature. The results indicate that the individual dynamics of each company tend to generate historical variations in the level of market concentration, typically converging towards increased concentration over time. However, as the probabilities of entry increase, markets tend to be less concentrated, particularly when there is no company with a high level of market share. This effect on competition is contingent upon the persistence in the participation level of the leading companies. It has been observed that the impact of a higher probability of entry on the level of market concentration is lower in those markets where the leading company maintains a higher level of participation over time, as well as in markets where there is a higher likelihood of exit.

Keywords: Microeconomics; Competition Policy; Entry Barriers; Simulations; Industrial Organization (search for similar items in EconPapers)
JEL-codes: C63 D22 D43 L10 L13 (search for similar items in EconPapers)
Date: 2023-11-01
New Economics Papers: this item is included in nep-com and nep-hme
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