Antitrust & Competition Policy Blog

Editor: D. Daniel Sokol
University of Florida
Levin College of Law

A Member of the Law Professor Blogs Network

Monday, September 21, 2009

Measurement of the Market Power of Firms: The Japanese Case in the 1990s

Posted by D. Daniel Sokol

Kozo Kiyota, Yokohama National University - Faculty of Business Administration, Takanobu Nakajima, Keio University - Faculty of Business and Commerce, and Kiyohiko G. Nishimura address Measurement of the Market Power of Firms: The Japanese Case in the 1990s.

ABSTRACT: This article presents a new simple econometric framework for the estimation of individual firms’ markup over their marginal cost, taking account of firm heterogeneity, demand-driven cyclical price changes, and the limited availability of firm-level information. The framework is applied to study markup of Japanese firms in manufacturing and wholesale/retail trade for 1994-2002. The results indicate that, on average, the Japanese markets become more competitive in the 1990s than before even in non-manufacturing industries. We also find sizable heterogeneity and non-negligible pro-cyclicality in the markup of the Japanese firms.

http://lawprofessors.typepad.com/antitrustprof_blog/2009/09/measurement-of-the-market-power-of-firms-the-japanese-case-in-the-1990s.html

| Permalink

TrackBack URL for this entry:

http://www.typepad.com/services/trackback/6a00d8341bfae553ef0120a5d4a5e4970c

Listed below are links to weblogs that reference Measurement of the Market Power of Firms: The Japanese Case in the 1990s:

Comments

Post a comment