Catalogue Search | MBRL
Are you sure you want to remove the book from the shelf?
{{itemTitle}}
19
result(s) for
"Shaanan, Joseph"
Sort by:
Ricardian or Monopoly Rents? The Perspective of Potential Entrants
Tests of the efficiency and market power hypotheses have focused on incumbents’ profitability. The current study examines the issue from the perspective of potential entrants. A key premise of the paper, which follows from the efficiency hypothesis, is that incumbents’ Ricardian rents (resulting from efficiency) usually do not induce entry. However, incumbents’ monopoly rents should attract entry, ceteris paribus. The entry response to adjusted and unadjusted profitability measures is compared. The difference between the measures represents Ricardian rents, according to the efficiency hypothesis, and monopoly rents, according to the market power hypothesis. The results, generally, favor the market power hypothesis.
Journal Article
Stochastic-Dynamic Limiting Pricing: An Empirical Test
This paper reviews the contributions made to the theory of limit pricing by the use of dynamic and stochastic models over the last decade. Tests are developed and performed for the implications of recent studies. The tests center around a traditional profit equation in which profits rise with concentration and entry barriers. The profits relationship is also used to derive estimates of the unobservable optimal profit level that would be chosen by a highly concentrated industry without regard to entry barriers. The results support the predictions of recent stochastic-dynamic limit pricing models while rejecting traditional limit pricing to forestall entry. Also offered are estimates of unobserved variables, such as entry forestalling profit levels, optimal profit levels, and blockaded levels of entry barriers. These estimates suggest concentrated industries do limit price, but in a manner consistent with the loss of market shares and profits over time.
Journal Article
Sunk Costs and Resource Mobility: An Empirical Study
While the concept of sunk costs has become increasingly important in theoretical work, relatively few empirical studies have examined sunk costs. The present study focuses on the relationship between tangible sunk costs and entry. An estimate of industry specific capital, derived from engineering-statistical cost estimates, is employed as a proxy for tangible sunk costs. With this measure we can test directly the relationship between irreversible investments and entry in a sample consisting of 40 U.S. manufacturing industries. The primary finding is that tangible sunk costs have a deterrent effect on entry.
Journal Article
IMPORTS AND DOMESTIC ENTRY: AN EMPIRICAL STUDY
The objectives of this study are twofold: (a) to investigate the influence of imports on domestic entrants and to see whether indeed imports have a deterring effect on potential entrants; and (b) to determine whether the common finding of a weakly negative, or even nonnegative, impact of imports on domestic firms' profitability can be attributed to imports' inhibiting effect on potential entrants. A reduction or removal of the threat of domestic entry enables existing firms to raise prices, therefore, this effect may partly counter the procompetitive, price reducing effect of imports on domestic oligopolistic markets.
Journal Article
Welfare and Barriers to Entry: An Empirical Study
This study presents welfare as an alternative to profits as a measure of social performance. By examining the determinants of aggregate welfare, several key issues which lie at the core of the field of industrial organization can be analyzed within a new framework. Specifically these issues are the following:
Journal Article
A Method for the estimation of limit prices without entry data
Estimates of limit pricing values are useful to researchers studying pricing strategies and oligopolistic behavior. Previous studies have demonstrated that limit prices (profits) can be estimated with the use of data on the entry of new firms. Unfortunately, entry data are scarce. The current study presents a methodology based on a property of dynamic-stochastic theories of limit pricing wherein limit prices can be estimated without entry data. This methodology requires the use of price elasticity of demand values which are more readily available than entry data. Following the methodology section, an application of this method is presented with a cross-section sample of consumer goods industries.
Journal Article
Welfare and Barriers to Entry: An Empirical Study
Aggregate welfare instead of profitability is used as a measure of social performance to directly assess the social welfare implications of barriers, concentrations, and entry. Market surplus is regressed using structure-conduct variables. The data consist of a sample of 37 US manufacturing industries used by Masson and Shaanan (1982, 1984) and cover the period 1958-1967. The results show that concentration acts in accordance with the predictions of the market power hypothesis, i.e., market surplus and consumer surplus are reduced while producer surplus is increased. From the 2 traditional entry barriers used in the analysis, the minimum efficient scale variable is found to conform with the definition of a welfare barrier. Advertising is found to enhance, rather than be a barrier to aggregate welfare. Advertising does not benefit producers at the expense of consumers. Entry appears to enhance market surplus, and growth has a positive effect on aggregate welfare.
Journal Article
Dynamic Competition and Price Adjustments
The link between price rigidity and market structure has long been a topic of interest to researchers in both macroeconomics and industrial organization. Research on this subject, with its antecedents in the widely debated topic of administered inflation, has gone through several stages. In recent years the focus of research has been on explaining the speed of price adjustment. A parallel line of research has been on the role of entry in disciplining the price behavior of incumbent firms. The previous work on price adjustment is here extended in several ways. Most importantly, dynamic elements of competition as measured by several disaggregated measures of domestic and import entry are introduced. The extent to which price effects of entry into the US manufacturing are due to changes in desired prices or to changes in the speed of adjustment to desired prices is evaluated. Pooled data is used to estimate, by nonlinear regression methods, both the desired (target) price change and the speed of adjustment across industries.
Journal Article