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- W2078598945 abstract "This paper develops a model which yields the specification of an empirical test for the difference between price and marginal revenue, which will be significantly positive if a firm exercises market power. The test can be carried out with any of a number of commonly used measures of accounting profitability, and embodies a specific functional form for the consideration of nonconstant returns to scale. The model is estimated for four firms in the medical-surgical supply industry and four firms in the motor vehicle industry. The results are consistent with the hypothesis that product differentiation is an important basis for firm-specific market power; import quotas are shown to increase market power in the motor vehicle industry. Claims that accounting data cannot be used to analyze market power are rejected." @default.
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- W2078598945 date "1988-01-01" @default.
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- W2078598945 title "The measurement of profitability and the diagnosis of market power" @default.
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- W2078598945 doi "https://doi.org/10.1016/s0167-7187(88)80013-4" @default.
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