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Another look at competition: a regime-switching aproach

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  • Martin Schmidt
  • David Berri

Abstract

Measuring the level of competition in an industry is an empirical task with a lengthy history. Many of the traditional measures offer a snapshot of the industry, where the distribution of market share is examined at a given point in time. The purpose of this inquiry is to utilize a regime-switching model which highlights the importance of intra-industry movement. The empirical results suggest that even in an environment where the distribution of market share is improving, an industry can still be persistently dominated by the same collection of leading firms.

Suggested Citation

  • Martin Schmidt & David Berri, 2004. "Another look at competition: a regime-switching aproach," Applied Economics, Taylor & Francis Journals, vol. 36(21), pages 2453-2460.
    • Handle: RePEc:taf:applec:v:36:y:2004:i:21:p:2453-2460
    DOI: 10.1080/0003684042000280571
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    References listed on IDEAS

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    1. El-Hodiri, Mohamed & Quirk, James, 1971. "An Economic Model of a Professional Sports League," Journal of Political Economy, University of Chicago Press, vol. 79(6), pages 1302-1319, Nov.-Dec..
    2. Daniel, Rascher, 1999. "A Test of the Optimal Positive Production Network Externality in Major League Baseball," MPRA Paper 25832, University Library of Munich, Germany.
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    Cited by:

    1. Stimel Derek S, 2011. "Dependence Relationships between On Field Performance, Wins, and Payroll in Major League Baseball," Journal of Quantitative Analysis in Sports, De Gruyter, vol. 7(2), pages 1-19, May.

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