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Strategy Choices of Firms and Market Structure

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  • Paul A. Kattuman
  • Barbara M. Roberts

Abstract

This paper suggests a new approach to the empirical analysis of market structure. Market concentration is an aspect of distribution of market shares of firms, and market shares are best modelled at the firm level, bringing into play strategy choices made by firms. It follows that a useful approach to explaining concentration would be a two stage one: to estimate firm size or market shares as a function of firm level determinants, and to use the information in these estimates to assess the relative contributions of firm characteristics to concentration. The method is illustrated by application to selected Polish manufacturing industries in the early transition period.

Suggested Citation

  • Paul A. Kattuman & Barbara M. Roberts, 2000. "Strategy Choices of Firms and Market Structure," Discussion Papers in Economics 00/10, Division of Economics, School of Business, University of Leicester.
    • Handle: RePEc:lec:leecon:00/10
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    File URL: https://www.le.ac.uk/economics/research/RePEc/lec/leecon/econ00-10.pdf
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    References listed on IDEAS

    as
    1. Jonathan Morduch & Terry Sicular, 2002. "Rethinking Inequality Decomposition, With Evidence from Rural China," Economic Journal, Royal Economic Society, vol. 112(476), pages 93-106, January.
    2. Mark Casson & John Creedy, 1993. "Industrial Concentration And Economic Inequality," Books, Edward Elgar Publishing, number 82.
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    Cited by:

    1. McAdam, Chris, 2020. "Are investors compensated for their sophistication and informedness for company takeovers – An Australian study," Global Finance Journal, Elsevier, vol. 44(C).

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    More about this item

    Keywords

    Market concentration; Firm Strategy; Transition; Poland;
    All these keywords.

    JEL classification:

    • L11 - Industrial Organization - - Market Structure, Firm Strategy, and Market Performance - - - Production, Pricing, and Market Structure; Size Distribution of Firms
    • L60 - Industrial Organization - - Industry Studies: Manufacturing - - - General
    • P21 - Political Economy and Comparative Economic Systems - - Socialist and Transition Economies - - - Planning, Coordination, and Reform

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