A New Way to Measure Competition

Dados Bibliográficos

ID9720401
AutoresJan Boone (0000-0002-0958-2444, CentER, TILEC, NMa, ENCORE, UvA, IZA and CEPR, autor correspondente)
Ano2008
Volume118
Fascículo531
Páginas1245-1261
Data de publicação2008-08-01
Peer ReviewedSim
Open AccessSim
TipoARTICLE
PeriódicoThe Economic Journal (JOURNAL)
Identificadores do periódicoISSN: 0013-0133 • E-ISSN: 1468-0297
EditoraOxford University Press (OUP) (PUBLISHER)
DOI10.1111/j.1468-0297.2008.02168.x
OpenAlexW3087801440
IdiomaEN
Citações recebidas27
Referências citadas24

This article introduces a new way to measure competition based on firms' profits. Within a general model, we derive conditions under which this measure is monotone in competition, where competition can be intensified both through a fall in entry barriers and through more aggressive interaction between players. The measure is shown to be more robust theoretically than the price cost margin. This allows for an empirical test of the problems associated with the price cost margin as a measure of competition

Competition (biology · Econometrics · Economics · Empirical measure · Margin (machine learning · Measure (data warehouse · Microeconomics · Monotone polygon · Statistics · Computer Science · Consumer Market Behavior and Pricing · Digital Platforms and Economics · Mathematics · Merger and Competition Analysis