Market-Structure and the Empirical Specification of Profit Margins
Martin Conyon
S Machin
| Publication date | 1991 |
| Original language | English |
Abstract
We present evidence from a panel of U.K. manufacturing industries to test the sensitivity of the margins-concentration relationship to specification changes in the dependent variable. Instrumental variable estimates demonstrate that a positive association between profit margins and concentration is contingent on how the margin is formulated.
