Publication

This paper argues that the effect of market concentration on firm survival is different according to whether an industry is static (low entry and exit) or dynamic. In their empirical analysis, the authors find support for this hypothesis in that industry concentration rates reduce the survival of new plants but only in markets marked by low entry and exit rates. Their results have implications for the antitrust/competition law, indicating less need for regulation of dominant firms in dynamic industries characterized by high entry and exit rates.