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Testing the interaction between concentration and barriers to entry

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Abstract

Various functional forms are employed to examine the independent and interactive effects of seller concentration and entry conditions on profitability. Significant interactive effects appear. There is also some evidence of a critical concentration ratio, which affects the slope of the concentration-profitability relationship.

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I am grateful for the comments of an anonymous referee. Responsibility for errors is my own.

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Martin, S. Testing the interaction between concentration and barriers to entry. Rev Ind Organ 1, 114–126 (1984). https://doi.org/10.1007/BF02354347

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