The structural stability of the concentration-performance relationship in food manufacturing
1982
Miller, S.E.
Extract: The objective of this paper is to determine whether there is a "critical" concentration ratio in the food manufacturing sector. The statistical techniques employed offer advantages over the methods used in previous analyses of this sort. The results of CUSUM, CUSUMSQ, and log-likelihood tests applied to food manufacturing firm data indicate a change in the relationship between concentration and profitability when four-firm concentration is 64%. There is only very weak evidence of a "critical" 8-firm concentration ratio.
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