The Economics of Industries and Firms

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