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 language | English |
|---|---|
| Place of Publication | Tilburg |
| Publisher | TILEC |
| Number of pages | 13 |
| Volume | 2010-043 |
| Publication status | Published - 2010 |
Publication series
| Name | TILEC Discussion Paper |
|---|---|
| Volume | 2010-043 |
UN SDGs
This output contributes to the following UN Sustainable Development Goals (SDGs)
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SDG 9 Industry, Innovation, and Infrastructure
Keywords
- competition
- measures of competition
- price cost margin
- profit elasticity
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