The number of firms and production capacity in relation to market size

Article Abstract:

Evidence shows that market size is significantly related to the number of firms and their production capacity. This is particularly true in the case of driving schools in Sweden, where the number of schools increases less than proportionally relative to market size. The study also confirms the hypothesis that firms belonging to homogeneous goods industries tend to have the same size and that profits per capita decrease in market size. Furthermore, competition among firms tends to intensify as market size increases.

Production Management, Market Targeting & Approach, Competition (Economics), Sweden, Markets (Economics), Industrial productivity, Market strategy

---

Quality uncertainty and price in monopoly markets

Article Abstract:

The pricing policy of a firm that holds a monopoly is examined in the context of a market where consumers' estimates of the monopoly firm's products are imprecise. Results show that the monopoly firm reduces prices when consumer uncertainty about its product increases, but only if consumer acceptance of the product is fairly uniform and quality uncertainty is relatively small. Otherwise, the monopoly firm's price tends to rise in direct relation to consumer uncertainty about quality.

Product quality, Pricing, Monopolies

---

Similar abstracts:

• Abstracts: Co - evolution of firms and consumers and the implications for market dominance. A class +1 sigmoidal activation functions for FFANNs
• Abstracts: Profitable predictability in the cross section of stock returns. Inflation risk premia and the expectations hypothesis
• Abstracts: Testing for efficient contracts in unionized labour markets. Hours Constraints and In-Work Poverty
• Abstracts: US trade balance dynamics: the role of fiscal policy and productivity shocks and of financial market linkages
• Abstracts: The applicability of standard reform packages to Eastern Europe. The role of the new, entrepreneurial private sector in transition and economic performance in light of the successes in Poland, the Czech Republic, and Hungary

This website is not affiliated with document authors or copyright owners. This page is provided for informational purposes only. Unintentional errors are possible.