Is equating market share to market power a sound economic principle?
Item Type:Journal article
Citation:Whelan, Ciara. 'Barrington lecture 2002/2003: is equating market share to market power a sound economic principle?'. - Dublin: Journal of the Statistical and Social Inquiry Society of Ireland,Vol. XXXII, 2002/2003, pp109-128
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There is a long history of mapping market structure into market power in economic analysis. This paper addresses the validity of this principle for both homogenous and differentiated products industries. While mapping market share dominance into market power may be acceptable for homogenous goods as a rule of thumb, it is by no means a robust result. In the case of differentiated products industries, there is no theoretical foundation for such a mapping. This paper highlights the need to move towards a structural approach to assessing market power in industries.
Description:Read before the Society, 8 May 2003. This lecture is delivered under the auspices of the Barrington Trust (founded by the bequest of John Barrington, Esq.) with the collaboration of the Journal of the Statistical and Social Inquiry Society of Ireland.
Author: Whelan, Ciara
Other Titles:Barrington lecture 2002/2003
Publisher:Statistical and Social Inquiry Society of Ireland
Type of material:Journal article
Series/Report no:Journal of the Statistical and Social Inquiry Society of Ireland
Vol. XXXII 2002/2003
Availability:Full text available