Measuring Competition using the Profit Elasticity

American Sugar Industry, 1890-1914

J. Boone, M. van Leuvensteijn

Research output: Working paperDiscussion paperOther research output

Abstract

The Profit Elasticity (PE) is a new competition measure introduced in Boone (2008). Sofar, there was no direct proof that this measure can identify regimes of competition empirically. This paper focuses on this issue using data of Genesove and Mullin (1998) in which different regimes of competition are identified. We derive a version of PE Suitable for this data set. This competition measure correctly classifies the monopoly/cartel regime as being less competitive than both the price ware regime and break-up of cartel regime.
Original languageEnglish
Place of PublicationTilburg
PublisherTILEC
Number of pages13
Volume2010-043
Publication statusPublished - 2010

Publication series

NameTILEC Discussion Paper
Volume2010-043

Fingerprint

Elasticity
Industry
Profit
Cartel
Monopoly

Keywords

  • competition
  • measures of competition
  • price cost margin
  • profit elasticity

Cite this

Boone, J., & van Leuvensteijn, M. (2010). Measuring Competition using the Profit Elasticity: American Sugar Industry, 1890-1914. (TILEC Discussion Paper; Vol. 2010-043). Tilburg: TILEC.
Boone, J. ; van Leuvensteijn, M. / Measuring Competition using the Profit Elasticity : American Sugar Industry, 1890-1914. Tilburg : TILEC, 2010. (TILEC Discussion Paper).
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Boone, J & van Leuvensteijn, M 2010 'Measuring Competition using the Profit Elasticity: American Sugar Industry, 1890-1914' TILEC Discussion Paper, vol. 2010-043, TILEC, Tilburg.

Measuring Competition using the Profit Elasticity : American Sugar Industry, 1890-1914. / Boone, J.; van Leuvensteijn, M.

Tilburg : TILEC, 2010. (TILEC Discussion Paper; Vol. 2010-043).

Research output: Working paperDiscussion paperOther research output

TY - UNPB

T1 - Measuring Competition using the Profit Elasticity

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AU - van Leuvensteijn, M.

N1 - Pagination: 13

PY - 2010

Y1 - 2010

N2 - The Profit Elasticity (PE) is a new competition measure introduced in Boone (2008). Sofar, there was no direct proof that this measure can identify regimes of competition empirically. This paper focuses on this issue using data of Genesove and Mullin (1998) in which different regimes of competition are identified. We derive a version of PE Suitable for this data set. This competition measure correctly classifies the monopoly/cartel regime as being less competitive than both the price ware regime and break-up of cartel regime.

AB - The Profit Elasticity (PE) is a new competition measure introduced in Boone (2008). Sofar, there was no direct proof that this measure can identify regimes of competition empirically. This paper focuses on this issue using data of Genesove and Mullin (1998) in which different regimes of competition are identified. We derive a version of PE Suitable for this data set. This competition measure correctly classifies the monopoly/cartel regime as being less competitive than both the price ware regime and break-up of cartel regime.

KW - competition

KW - measures of competition

KW - price cost margin

KW - profit elasticity

M3 - Discussion paper

VL - 2010-043

T3 - TILEC Discussion Paper

BT - Measuring Competition using the Profit Elasticity

PB - TILEC

CY - Tilburg

ER -

Boone J, van Leuvensteijn M. Measuring Competition using the Profit Elasticity: American Sugar Industry, 1890-1914. Tilburg: TILEC. 2010. (TILEC Discussion Paper).