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Economics/Finances Sunk Costs and Market Structure: Price Competition, Advertising, and the Evolution of Concentration

Posted on 2010-03-16




Name:Economics/Finances Sunk Costs and Market Structure: Price Competition, Advertising, and the Evolution of Concentration
ASIN/ISBN:0262193051
Language:English
File size:1.3 Mb
Publisher: The MIT Press
ISBN: 0262193051
Publish Date: edition 1991
File Type: PDF
Pages: 577 pages
File Size: 1,3 mb
   Economics/Finances Sunk Costs and Market Structure: Price Competition, Advertising, and the Evolution of Concentration



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Sunk Costs and Market Structure: Price Competition, Advertising, and the Evolution of Concentration

Sunk Costs and Market Structure bridges the gap between the new generation of game theoretic models that has dominated the industrial organization literature over the past ten years and the traditional empirical agenda of the subject as embodied in the structure-conduct-performance paradigm developed by Joe S. Bain and his successors. The new theoretical literature has engendered pessimism in recent years because many results turn out to depend on detailed features of the market that are difficult to measure. This has led many observers to argue that the new literature offers little basis for the kind of cross-industry studies that have formed the empirical base of the subject since the 1950s. Using current game-theoretic methods, John Sutton reexamines the traditional agenda. He argues that despite the “delicate” nature of many results, there are theoretical predictions that turn out to be extremely robust to reasonable changes in model specification, and these results should be taken into account when looking for statistical regularities across a broad spectrum of different industries.

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