The economics of industries and firms : theories, evidence and policy

BOOK COVER......Page 1 HALF-TITLE......Page 2 TITLE......Page 3 COPYRIGHT......Page 4 CONTENTS......Page 5 ABBREVIATIONS......Page 7 PREFACE TO THE SECOND EDITION......Page 9 PART ONE: ECONOMICS OF INDUSTRY......Page 10 1 AN INTRODUCTION......Page 11 2 STRUCTURE, CONDUCT AND PERFORMANCE: AN OVERVIEW......Page 15 Elements of Structure and Performance......Page 17 Some Econometric Considerations......Page 18 Some Problems......Page 19 Definitions of Firms and Industries......Page 24 Notes......Page 26 The Measurement of Concentration......Page 27 Measures of Concentration......Page 29 Concentration in Britain and the United States......Page 33 Multinational Enterprise......Page 37 Determinants of Concentration......Page 40 Notes......Page 42 Introduction......Page 44 Sources of Economies of Scale......Page 46 Statistical Cost Curves......Page 47 Engineering Approach......Page 50 Survivor Technique......Page 51 Engineering Approach......Page 54 Survivor Technique......Page 56 Firm-level Economies......Page 57 Learning-by-doing......Page 58 Notes......Page 59 Objectives of the Firms......Page 60 Impact of Economies of Scale on Price......Page 61 Absolute Cost Advantage......Page 62 Impediments Against New Entry......Page 63 Collusion and Restrictive Practices......Page 64 Notes......Page 66 Links between Concentration and Profitability......Page 68 Some Further Considerations......Page 72 Measurement of Variables......Page 73 British Studies......Page 76 American Results......Page 78 Notes......Page 83 7 ADVERTISING......Page 84 Advertising as a Decision Variable......Page 85 Information or Persuasion......Page 86 Advertising and Profitability......Page 87 Advertising as Performance......Page 90 Summary of Propositions......Page 91 Advertising and Concentration......Page 92 Concentration and Advertising......Page 93 Advertising and Changes in Concentration......Page 94 Advertising and Profitability......Page 95 Conclusions......Page 96 Notes......Page 97 Introduction......Page 98 Research Intensity and Firm Size......Page 102 Innovation and Firm Size......Page 104 Research and Industrial Structure......Page 105 Impact on Industrial Structure......Page 106 Notes......Page 107 Price Decisions......Page 108 Structure and Pricing......Page 110 Summary of Evidence......Page 113 Notes......Page 117 10 THE STRUCTURE-CONDUCT-PERFORMANCE APPROACH: A CRITIQUE......Page 119 Note......Page 123 PART TWO: ECONOMICS OF FIRMS......Page 124 Theories of Baumol and Marris......Page 125 The Separation of Ownership and Control......Page 128 Performance Differences between Owner-controlled and Manager-controlled Firms......Page 132 Determinants of Executive Income......Page 137 Organisational Structure......Page 141 Notes......Page 143 Profitability and Size......Page 144 Growth and Firm Size......Page 146 Profitability and Size......Page 148 Growth and Profitability......Page 149 Horizontal and Vertical Integration......Page 150 Diversification......Page 154 Notes......Page 155 Introduction......Page 157 The Neo-classical Theory......Page 160 Market Power Theory......Page 161 Managerial Interests......Page 162 Profitability......Page 163 Valuation Ratio......Page 164 Growth......Page 165 Size......Page 166 Evidence on Impact of Acquisitions......Page 167 On Profitability......Page 168 On Efficiency......Page 169 On Concentration......Page 170 Notes......Page 172 PART THREE: ECONOMICS OF POLICY......Page 174 The Measurement of Welfare Loss Under Monopoly......Page 175 Estimates of Monopoly Welfare Loss......Page 177 An Alternative Approach......Page 178 General Remarks on Monopoly Welfare Loss......Page 179 Costs of Monopolisation......Page 180 Notes......Page 182 Atomistic Competition......Page 184 Contestable Markets......Page 186 Workable Competition......Page 188 Laissez-faire......Page 191 Public Intervention and Ownership......Page 193 Can Industrial Policies be Implemented?......Page 196 Notes......Page 197 Introduction......Page 199 UK Policy......Page 200 US Policy......Page 204 UK Policy......Page 205 US Policy......Page 207 EEC Policy......Page 208 UK Policy......Page 209 US Policy......Page 211 Restructuring Industry......Page 212 Privatisation......Page 214 Efficiency Investigations......Page 217 Competition Act 1980......Page 218 Notes......Page 219 BIBLIOGRAPHY......Page 222 SUBJECT INDEX......Page 235 AUTHOR INDEX......Page 239