We found a match
Your institution may have access to this item. Find your institution then sign in to continue.
- Title
Cooperation v. Rivalry: Price-Cost Margins By Line of Business.
- Authors
Kwoka Jr., John E.; Ravenscraft, David J.
- Abstract
This paper incorporates the notion of rivalry into current oligopoly models. Particular attention is placed on the specification of the firm interaction parameter. The empirical work demonstrates that rivalry is an important phenomenon in US manufacturing industries. Specifically, the findings suggest that a larger market share raises a firm's own margin. A larger leader lowers follower margins in high-scale industries, but has little effect where scale economies are not important. In addition, larger second-ranked firms can significantly lower leaders' margins.
- Subjects
UNITED States; OLIGOPOLIES; IMPERFECT competition; COMPETITION; UNITED States manufacturing industries; INDUSTRIES; UNITED States economy
- Publication
Economica, 1986, Vol 53, Issue 211, p351
- ISSN
0013-0427
- Publication type
Article
- DOI
10.2307/2554139