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FIRM MARKET SHARE, PRICE FLEXIBILITY, AND IMPERFECT INFORMATION
Author(s) -
ECKARD E. WOODROW
Publication year - 1982
Publication title -
economic inquiry
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 0.823
H-Index - 72
eISSN - 1465-7295
pISSN - 0095-2583
DOI - 10.1111/j.1465-7295.1982.tb00356.x
Subject(s) - economics , flexibility (engineering) , imperfect , perfect information , market price , market share , market share analysis , microeconomics , limit price , market rate , mid price , industrial organization , monetary economics , market microstructure , price level , order (exchange) , finance , management , linguistics , philosophy
This paper argues that firms with larger market shares will be relatively better informed about demand conditions. The main implications are 1) more rapid price adjustments in concentrated industries, 2) price leadership in industries with dominant firms, and 3) price setting behavior by the concentrated side of the market.