Chapter

Industrial Organization

Hiroyuki Odagiri

in Growth through Competition, Competition through Growth

Published in print May 1994 | ISBN: 9780198288732
Published online November 2003 | e-ISBN: 9780191596711 | DOI: http://dx.doi.org/10.1093/0198288735.003.0008
 Industrial Organization

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Competition, it is argued, is a behavioural concept, and the growth pursuit of Japanese firms and their preference for internal growth over mergers and acquisitions make the markets competitive, probably more so than in other countries. This argument is consistent with the international comparison of the level and variance of profit rates, particularly the smaller inter‐firm variance of profit rates in Japan than in the USA and the UK.. The extent of the persistence of profits is also examined, which again suggests that a more competitive force is present in Japan. Finally, our study on structure‐performance correlation suggests that for Japan as well as for the USA, collusion of oligopolistic firms may have been dominant in the 1960s but has become rather irrelevant in recent years.

Keywords: acquisition; collusion; competition; growth; merger; oligopoly; persistence; profit; structure

Chapter.  11278 words.  Illustrated.

Subjects: Business and Management

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