About | HeinOnline Law Journal Library | HeinOnline Law Journal Library | HeinOnline
LOG IN
LOG IN

27 Antitrust Bull. 83 (1982)
Concentration versus Market Share: Which Determines Performance and Why Does It Matter

handle is hein.journals/antibull27 and id is 85 raw text is: The Antitrust Bulletin/Spring 1982 Concentration versus market share: which determines performance and why does it matter? BY BRADLEY T. GALE* and BEN S. BRANCH** The empirical research reviewed in this article has led us to conclude that market share, not concentration, is the primary structural determinant of profitability. Market share increases profits through the benefits of scale economies. In contrast, concentration affects profits by facilitating oligopolistic coor- dination. We conclude therefore that scale economies are far more powerful than oligopoly power in determining profit levels. For this reason, we believe that provisions of our antitrust laws based on the presumption that concentrated market structures lead to resource misallocation (i.e., antimerger and antimonopoly provisions of the Clayton and Sherman Acts) are misguided and may well be leading to decreased efficiency. The debate: market share versus concentration Many industrial organization specialists have sought to find empirical support for the proposition that concentrated market * Director of Research, Strategic Planning Institute. ** Professor of Finance, University of Massachusetts. AUTHORS' NOTE: Editorial assistance with this article was provided by Ruth G. Newman. © 1982 by Federal Legal Publications, Inc.

What Is HeinOnline?

HeinOnline is a subscription-based resource containing thousands of academic and legal journals from inception; complete coverage of government documents such as U.S. Statutes at Large, U.S. Code, Federal Register, Code of Federal Regulations, U.S. Reports, and much more. Documents are image-based, fully searchable PDFs with the authority of print combined with the accessibility of a user-friendly and powerful database. For more information, request a quote or trial for your organization below.



Short-term subscription options include 24 hours, 48 hours, or 1 week to HeinOnline.

Purchase Access

Contact us for annual subscription options:

Contact Us

Already a HeinOnline Subscriber?

Log In

profiles profiles most