A New Way to Measure Competition

Boone, Jan

doi:10.2139/ssrn.557821

Cited by 244 publications

(458 citation statements)

References 20 publications

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“…For this end we estimate the PCM of each firm as proposed by Boone (2008a), and aggregate them into yearly industry PCMs using market share as the weight. The market share is derived as the share of the firm sales on industry sales in a year.…”

Section: Resultsmentioning

confidence: 99%

“…As Boone (2008a) proves, his measure of competition is robust to distortions out of the reallocation effect. The following example will illustrate how the reallocation effect works and how it affects both RPD and PCM.…”

Section: Measuring Competitionmentioning

confidence: 90%

“…Against this background and the fact that the interpretation of popular concentration indices like Herfindahl is also not straightforward in terms of competition, Boone (2008a) proposes a new competition measure. Termed Relative Profit Differences (RPD), its main idea is that competition rewards efficiency.…”

Section: Measuring Competitionmentioning

confidence: 99%

“…All previously mentioned studies followed Boone (2008a) and analyzed the competition based on three digit sector classification. With our rich dataset we are able to focus on a four digit sector and goods classifications, defining the respective markets even more detailed than any previous analysis.…”

Section: Datamentioning

confidence: 99%

“…Despite these drawbacks, the PCM is still a popular measure in empirical research (see, for example, Pruteanu-Podpiera et al, 2007;Maudos and Fernandez de Guevara, 2006;Aghion et al, 2005;Nevo, 2001;Klette, 1999). Boone (2008a) extends the existing set of competition measures by suggesting an indicator that relies on Relative Profit Differences (RPD). This approach is based on the notion that competition rewards efficiency.…”

Section: Introductionmentioning

confidence: 99%

See 4 more Smart Citations

Empiricism Meets Theory: Is the Boone-Indicator Applicable?

Schiersch

Schmidt-Ehmcke

2010

SSRN Journal

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Standard-Nutzungsbedingungen:Die Dokumente auf EconStor dürfen zu eigenen wissenschaftlichen Zwecken und zum Privatgebrauch gespeichert und kopiert werden.Sie dürfen die Dokumente nicht für öffentliche oder kommerzielle Zwecke vervielfältigen, öffentlich ausstellen, öffentlich zugänglich machen, vertreiben oder anderweitig nutzen.Sofern die Verfasser die Dokumente unter Open-Content-Lizenzen (insbesondere CC-Lizenzen) zur Verfügung gestellt haben sollten, gelten abweichend von diesen Nutzungsbedingungen die in der dort genannten Lizenz gewährten Nutzungsrechte. Terms of use: Documents in

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Section: Resultsmentioning

confidence: 99%

Section: Measuring Competitionmentioning

confidence: 90%

Section: Measuring Competitionmentioning

confidence: 99%

Section: Datamentioning

confidence: 99%

Section: Introductionmentioning

confidence: 99%

See 3 more Smart Citations

Empiricism Meets Theory: Is the Boone-Indicator Applicable?

Schiersch

Schmidt-Ehmcke

2010

SSRN Journal

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Comparing competitive toughness to benchmark outcomes in retail oligopoly pricing

Sakamoto

Stiegert

2017

Agribusiness

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Past research on pricing in imperfectly competitive markets conventionally assumes that competition operates through a specific quantity or a price game. However, most markets do not function in a manner consistent with a single static benchmark. Methods to overcome this problem have largely been rejected by the research community (i.e., conjectural variations). The primary objective of our research is to introduce a new methodology for measuring imperfect competition under product differentiation in consumer goods.We develop the empirical procedures for estimating a competitive toughness model as proposed by d'Aspremont, Dos Santos Ferreira, and Gérard-Varet. This approach presents a theoretically grounded procedure that measures market power in an empirically tractable framework. We estimate the proposed model on the retail market for ground coffee. Our results suggest that market power is understated in a model that imposes the restriction of Bertrand pricing.The results suggest that this could be a promising approach for use in many applications. [EconLit citations: D43, L13, K21]

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Does competition lead to financial stability or financial fragility for Islamic and conventional banks? Evidence from the GCC countries

et al. 2020

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This paper investigates the nexus between stability and competition in the banking sector of the Gulf Cooperation Council. We examined a sample of 75 banks over the period 2006–2016. We found a U‐shaped relationship between bank stability and competition suggesting competition‐stability and competition‐fragility nexus. Banking concentration was found to affect instability negatively, which supported the “too important to be bailed out” view. Furthermore, we found that Islamic banks were less stable compared to conventional banks. We also found that bank size, profitability and capital regulation increase bank stability. In addition, the stock market return and the level of debt‐to‐GDP increase instability while the growth in oil price increase stability. Our findings are relevant to regulators to impose or release restrictions that boost financial stability.

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A New Way to Measure Competition

Cited by 244 publications

References 20 publications

Empiricism Meets Theory: Is the Boone-Indicator Applicable?

Empiricism Meets Theory: Is the Boone-Indicator Applicable?

Comparing competitive toughness to benchmark outcomes in retail oligopoly pricing

Does competition lead to financial stability or financial fragility for Islamic and conventional banks? Evidence from the GCC countries

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