RICARDIAN OR MONOPOLY RENTS? THE PERSPECTIVE OF POTENTIAL ENTRANTS

摘要

The explanation for the positive relationship between concentration and profitability is one of the most controversial topics in the field of industrial organization. The interest in this topic is due primarily to the conflicting antitrust policy implications originating from two competing hypotheses: the market power (collusion) hypothesis and the efficiency hypothesis. Tests of these hypotheses have focused, to a large extent, on the determinants of incumbents' profitability. The most widely used test has been criticized for being insufficiently discriminating and, therefore, inappropriate for determining the validity of the hypotheses.