IDEAS home Printed from https://ideas.repec.org/p/oec/stiaaa/2025-04-en.html
   My bibliography  Save this paper

Concentration and business dynamics in product markets

Author

Listed:
  • Sara Calligaris
  • Chiara Criscuolo
  • Josh De Lyon
  • Andrea Greppi
  • Oliviero Pallanch

Abstract

There is robust evidence that industry concentration has risen over recent decades. However, product market concentration is most relevant for competition. This paper measures concentration and business dynamism using novel data on sales of business groups (BGs) across detailed product markets in Europe. Industry concentration is strongly correlated with product concentration, suggesting it can serve as a reliable proxy. Product concentration is higher than industry concentration, but both increased in Europe between 2012 and 2021. Business dynamism among market leaders is lower in industries than in product markets but both have declined. Looking at the margins of sales growth of BGs across products, countries, and brands, most growth occurs in products and countries in which the group already operates. New brands developed or acquired by BGs account for a large portion of growth. Finally, when brands are acquired, their performance worsens relative to brands that were not acquired.

Suggested Citation

  • Sara Calligaris & Chiara Criscuolo & Josh De Lyon & Andrea Greppi & Oliviero Pallanch, 2025. "Concentration and business dynamics in product markets," OECD Science, Technology and Industry Working Papers 2025/04, OECD Publishing.
    • Handle: RePEc:oec:stiaaa:2025/04-en
    as

    Download full text from publisher

    To our knowledge, this item is not available for download. To find whether it is available, there are three options:
    1. Check below whether another version of this item is available online.
    2. Check on the provider's web page whether it is in fact available.
    3. Perform a search for a similarly titled item that would be available.

    More about this item

    Keywords

    Competition; Concentration; Market Power;
    All these keywords.

    JEL classification:

    • F14 - International Economics - - Trade - - - Empirical Studies of Trade
    • F60 - International Economics - - Economic Impacts of Globalization - - - General
    • L11 - Industrial Organization - - Market Structure, Firm Strategy, and Market Performance - - - Production, Pricing, and Market Structure; Size Distribution of Firms
    • L22 - Industrial Organization - - Firm Objectives, Organization, and Behavior - - - Firm Organization and Market Structure
    • D22 - Microeconomics - - Production and Organizations - - - Firm Behavior: Empirical Analysis

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:oec:stiaaa:2025/04-en. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no bibliographic references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: the person in charge (email available below). General contact details of provider: https://edirc.repec.org/data/scoecfr.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.