Growth Response To Competitive Shocks: Market Structure Dynamics Under Liberalisation
- Topics:
- Organization
- Source:
- University of Cambridge
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Overview: Liberalisation transforms market structures through the behavioural responses of incumbent firms and entrants, large firms and small, to enhanced freedom of choice. Change in market share volatility, and change in the effective agility of small and large firms underpin changes in market structure. We find that while market structures themselves appeared to change little, turbulence in market shares, as well as the way growth is related to size responded markedly, differing in direction and magnitude, depending on whether the liberalisation was partial and domestic, or comprehensive. We find that they tended to offset each other, leading to little visible change in market structure itself.
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Format: PDF | Size: 241KB | Date: Jun 2003 | Pages: 23






