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Concentration and market size: lower bound estimates for the Brazilian industry

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  • Marcelo Resende

    (Instituto de Economia, Universidade Federal do Rio de Janeiro)

Abstract

The paper estimates the lower bound for market concentration taking as reference the framework advanced by Sutton (1991). Quantile regression methods were considered in the context of the Brazilian manufacturing industry in 2005 and separate estimates were obtained for exogenous and endogenous sunk cost industries. The evidence favoured a convergence of the concentration lower bound towards zero in exogenous sunk costs industries in line with previous empirical evidence for developed countries. In contrast, the magnitude was similar in the case of endogenous sunk cost industries what might reflect the low technological effort in that emerging economy

Suggested Citation

  • Marcelo Resende, 2009. "Concentration and market size: lower bound estimates for the Brazilian industry," Economics Bulletin, AccessEcon, vol. 29(3), pages 2465-2471.
    • Handle: RePEc:ebl:ecbull:eb-09-00222
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    References listed on IDEAS

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    More about this item

    Keywords

    concentration market size;

    JEL classification:

    • L1 - Industrial Organization - - Market Structure, Firm Strategy, and Market Performance
    • C3 - Mathematical and Quantitative Methods - - Multiple or Simultaneous Equation Models; Multiple Variables

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