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Group Profit, Market Share and Efficiency: Evidence from Australian Manufacturing

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Abstract

This paper explains the intra-industry variations of profit in Australian manufacturing. Considering three groups of firms, viz leading, secondary and follower groups, a profit model is developed for each group. Indicators of ``strategic behavior'' and ``efficiency'' are considered along with other control variables. Both equilibrium and dynamic versions of the model are tested using unpublished data at the enterprise level between 1977/78 and 1992/93. The findings support the importance of both strategic behavior and efficiency in determining group profits.

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Authors and Affiliations

  1. Department of Economics, Monash University, Caulfield East, P.O. Box 197, VIC, 3145, Australia

    Mita Bhattacharya

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  1. Mita Bhattacharya
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Bhattacharya, M. Group Profit, Market Share and Efficiency: Evidence from Australian Manufacturing. Review of Industrial Organization 20, 187–199 (2002). https://doi.org/10.1023/A:1013888621518

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