125-145

• Dassiou, Xeni

This paper constructs a framework for distinguishing between the differential efficiency versus the market power hypotheses regardless of whether the relationship between industry and/or firm profitability and concentration and/or market share is positive or negative. This is made possible by the establishing of criteria which express the two hypotheses as mutually exclusive either at the firm level or, if this is not possible, at the industry level. These criteria are based on whether the production is characterised by increasing or decreasing returns to scale and on the magnitudes of the gap in efficiency and the gap in collusion between efficient (innovating) and non efficient (laggard) firms respectively.

• Economics and Business
• Computer and information sciences

• Industries
• Economics
• Statistics

Περιέχει παράρτημα, υποσημειώσεις και βιβλιογραφία, This is a revised version of the first three chapters of my PhD dissertation (Dassiou, (1990)), submitted at London University. I would like to thank Dr. R. Vaughan and Professor D. Glycopantis for many helpful conversations and advise and an anonymous referee for useful comments. The usual disclaimer applies.