Price-Cost Margins and Market Structure

Cowling, Keith; Waterson, Michael

doi:10.2307/2553125

Cited by 429 publications

(235 citation statements)

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“…This problem is solved by scaling the range of possible outcomes of the (Herfindahl) concentration measure (of which the lower bound depends on the number of firms within the industry) between zero and one. Fourthly, in accordance with Stigler's (1964) market-power hypothesis, the effectiveness of collusion is likely to be greater when industries become increasingly concentrated suggesting a nonlinear, progressive, relationship between concentration and performance (cf Collins and Preston, 1966; and formal derivations by Cowling and Waterson, 1976;Geroski, 1981;Clarke et al, 1984;and St~lhammer, 1991). In the present study this non-linearity is accounted for by dividing the concentration measure by one minus itself.…”

Section: Concentration Product Differentiation and Other Barriers Tosupporting

confidence: 61%

“…Strickland andWeiss, 1976, p. 1111;De Ghellinck et al, 1988, p. 7). 1 The latter receive theoretical supportas far as the denominator of p is concerned -from Cowling and Waterson (1976) who demonstrate that the industry price-cost margin may be arrived at as the ratio of revenues minus marginal costs to industry revenues. However, this definition is still a theoretical one with little empirical content, since the use of marginal costs formally requires insights into actual industry cost structures.…”

Section: The Empirical Frameworkmentioning

confidence: 99%

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Wholesale pricing in a small open economy

Dalen

Thurik

1995

De Economist

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Section: Concentration Product Differentiation and Other Barriers Tosupporting

confidence: 61%

Section: The Empirical Frameworkmentioning

confidence: 99%

Wholesale pricing in a small open economy

Dalen

Thurik

1995

De Economist

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“…Cowling and Waterson (1976), Dansby and Wilig (1979) and Novshek (1980) Index. Similarly, a dominant cartel of k firms with a competitive fringe generates equilibrium price-cost margins related to the k-firm concentration index (Saving 1970).…”

Section: Measuring Market Structurementioning

confidence: 99%

Market structure and competitive conditions in the Arab GCC banking system

Al‐Muharrami

Matthews

Khabari

2006

Journal of Banking & Finance

141

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“…The Lerner index (P TA ñMC TA )/P TA (COWLING and WATERSON, 1976;BRESNAHAN, 1989; FREIXAS equation estimated relates total revenue (TR) to three components of unit cost, a measure of output capacity and ROCHET, 1997;and EUROPEAN CENTRAL BANK, 2001).…”

Section: A Measure Of Realized Competition: the Loan-deposit Rate Spreadmentioning

confidence: 99%

Deregulation, Bank Competition and Regional Growth

Valverdie¹,

Humphrey²,

Fernández³

2003

Regional Studies

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CARBÓ VALVERDE S., HUMPHREY D. B. and RODRÍGUEZ FERNÁ NDEZ F. (2003)Deregulation, bank competition and regional growth, Reg. Studies 37, 227-237. Cross-country studies suggest that countries with greater financial sector competition have higher rates of economic growth. However, it is difficult to 'hold constant' different legal and cultural environments in these analyses, leading some to suggest that this relationship is due less to competition than to differing legal and cultural conditions which favour economic growth. As these differences are small within a country, an interregional analysis may reflect better the relationship between financial market competition and growth. We study five large regions in Spain over 1986-98. Using different indicators of market competition, we analyse changes in regional competition and growth. Granger-causality tests show that differences in competition are not associated with improved regional growth. Although deregulation raised deposit rates and lowered loan rates, these benefits have not markedly influenced regional growth. The positive relationship shown between competitive markets and growth in cross-country studies may instead be due to some unspecified third factor that influences both. DeregulationMarket

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Price-Cost Margins and Market Structure

Cited by 429 publications

References 0 publications

Wholesale pricing in a small open economy

Wholesale pricing in a small open economy

Market structure and competitive conditions in the Arab GCC banking system

Deregulation, Bank Competition and Regional Growth

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