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On the specification of structure-performance relationships

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  • Sawyer, Malcolm C.

Abstract

This paper argues that most estimated structure-profitability equations in industrial economics have not been derived from a single coherent view of the behaviour of firms. The independent variables in such equations have often been derived on the basis of a literature search and by appeal to conflicting approaches (e. g. constrained and unconstrained profit maximisation). The use of a coherent approach indicates that structure-performance equations are likely to be highly non-linear, and that simultaneous equation estimation is neither required nor appropriate. In some cases single-equation estimation is adequate, and in other cases reduced form equations are needed.

Suggested Citation

  • Sawyer, Malcolm C., 1982. "On the specification of structure-performance relationships," European Economic Review, Elsevier, vol. 17(3), pages 295-306.
    • Handle: RePEc:eee:eecrev:v:17:y:1982:i:3:p:295-306
    DOI: 10.1016/S0014-2921(82)80065-2
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    References listed on IDEAS

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    Cited by:

    1. Devadason, Evelyn & Subramaniam, Thirunaukarasu, 2014. "Trade Linkages and Domestic Market Concentration: An Empirical Exploration for Malaysia," Jurnal Ekonomi Malaysia, Faculty of Economics and Business, Universiti Kebangsaan Malaysia, vol. 48(1), pages 3-12.
    2. Michael Olive, 2008. "Scale economies with regard to price adjustment costs and the speed of price adjustment in Australian manufacturing," International Review of Applied Economics, Taylor & Francis Journals, vol. 22(1), pages 63-75.
    3. van Dalen, Jan & Thurik, Roy, 1998. "A model of pricing behavior: An econometric case study," Journal of Economic Behavior & Organization, Elsevier, vol. 36(2), pages 177-195, August.
    4. Harry Bloch & Michael Olive, 2007. "The Speed and Stability of Price Adjustment in Australian Manufacturing," The Economic Record, The Economic Society of Australia, vol. 83(s1), pages 46-56, September.
    5. Mita Bhattacharya & Michael Olive, 2007. "Adjustment Of Pricing: Evidence From Indian Manufacturing," Monash Economics Working Papers 04-07, Monash University, Department of Economics.

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