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AN EMPIRICAL STUDY OF MARKET STRUCTURES
Author(s) -
Doyle Peter,
Gidengil Zeki B.
Publication year - 1977
Publication title -
journal of management studies
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 4.398
H-Index - 184
eISSN - 1467-6486
pISSN - 0022-2380
DOI - 10.1111/j.1467-6486.1977.tb00367.x
Subject(s) - operationalization , construct (python library) , market structure , competition (biology) , empirical research , economics , government (linguistics) , product market , marketing , industrial organization , perfect competition , microeconomics , business , computer science , mathematics , ecology , philosophy , linguistics , epistemology , incentive , biology , programming language , statistics
The concept of market structure is at the heart of economic theory. Yet the construct has been largely neglected in marketing. Part of the reason is that it has never been effectively operationalized. In examining the implications of market structure empirical researchers have tended to use single indices for an essentially multidimensional construct. Here we show how markets can be classified objectively using the three key dimensions of structure: market concentration, product differentiation and barriers to entry. The methodology proposed should provide a more reliable base for research into strategic and competitive implications of marketing structure. The purpose of this paper is to develop an operational measure of market structure. The concept of market structure is important both in marketing and economics. Yet empirical work has produced disappointing results. 1 Both economists and managers have stressed the need for new definitions and measures if useful generalizations are to be developed and the concept is to provide a valuable basis for government regulation over market competition.