Concentration trends and profitability in the US manufacturing sector: 1970—84

It has been suggested that the US economy is becoming more concentrated and less competitive. Concentration is also claimed to affect the return and risk of companies. In this paper, using the entropy technique, the concentration index for the manufacturing sector of the US economy has been computed and the concentration trend has been analysed. Furthermore, the impact of concentration on return and risk of manufacturing companies is investigated.

[1]  Robin Wensley,et al.  In Search of the Market Share Effect. , 1981 .

[2]  B. Gale,et al.  Market Share and Rate of Return , 1972 .

[3]  What Has Been Happening to Aggregate Concentration in the United States , 1981 .

[4]  W. G. Shepherd,et al.  The Elements of Market Structure , 1972 .

[5]  D. Aaker,et al.  Is Market Share all that It's Cracked up to Be? , 1985 .

[6]  J. R. Carter.  Collusion, Efficiency, and Antitrust , 1978, The Journal of Law and Economics.

[7]  Stavros B. Thomadakis.  A model of market power, valuation and the firm's returns , 1976 .

[8]  F. Scherer,et al.  Industrial Market Structure and Economic Performance. , 1971 .

[9]  W. G. Shepherd,et al.  Causes of Increased Competition in the U.S. Economy, 1939-1980 , 1982 .

[10]  W. G. Shepherd,et al.  Market Power and Economic Welfare, an Introduction , 1970 .

[11]  Timothy G Sullivan.  The Cost of Capital and the Market Power of Firms , 1978 .

[12]  Marshall Hall,et al.  Firm Size and Profitability , 1967 .

[13]  Joe S. Bain,et al.  Relation of Profit Rate to Industry Concentration: American Manufacturing, 1936–1940 , 1951 .

[14]  D. H. Freeman.  Statistical Decomposition Analysis , 1974 .

[15]  M. Adelman.  The Measurement of Industrial Concentration , 1951 .

[16]  Sam Peltzman,et al.  The Gains and Losses from Industrial Concentration , 1977, Journal law and economy.

[17]  H. Demsetz.  Industry Structure, Market Rivalry, and Public Policy , 1973, The Journal of Law and Economics.

[18]  Matityahu Marcus,et al.  Profitability and Size of Firm: Some Further Evidence , 1969 .

[19]  Michel Chevalier,et al.  Market Share Strategy and the Product Life Cycle , 1974 .

[20]  William G. Shephard.  Trends of Concentration in American Manufacturing Industries, 1947-1958 , 1964 .