Dinámica de la Concentración de Mercados: simulaciones Basadas en el Enfoque de Gibrat

Ramírez Mordán, Nerys and Rodríguez Núñez, Juan Bautista (2023): Dinámica de la Concentración de Mercados: simulaciones Basadas en el Enfoque de Gibrat. Published in:

Abstract

This document employs simulation techniques (of what kind) to attempt to replicate the market's behavior under various conditions associated with its competitive structure and the potential existence of entry barriers. The aim is to connect these simulations with theoretical and empirical findings identified in the literature. The results indicate that the individual dynamics of each company tend to generate historical variations in the level of market concentration, typically converging towards increased concentration over time. However, as the probabilities of entry increase, markets tend to be less concentrated, particularly when there is no company with a high level of market share. This effect on competition is contingent upon the persistence in the participation level of the leading companies. It has been observed that the impact of a higher probability of entry on the level of market concentration is lower in those markets where the leading company maintains a higher level of participation over time, as well as in markets where there is a higher likelihood of exit.

• Item Type: MPRA Paper
• English Title: Market Concentration Dynamics: simulations Based on the Gibrat Approach
• Language: Spanish
• Keywords: Microeconomics, Competition Policy, Entry Barriers, Simulations, Industrial Organization
• Subjects: C - Mathematical and Quantitative Methods > C6 - Mathematical Methods ; Programming Models ; Mathematical and Simulation Modeling > C63 - Computational Techniques ; Simulation Modeling; D - Microeconomics > D2 - Production and Organizations > D22 - Firm Behavior: Empirical Analysis; D - Microeconomics > D4 - Market Structure, Pricing, and Design > D43 - Oligopoly and Other Forms of Market Imperfection; L - Industrial Organization > L1 - Market Structure, Firm Strategy, and Market Performance > L10 - General; L - Industrial Organization > L1 - Market Structure, Firm Strategy, and Market Performance > L13 - Oligopoly and Other Imperfect Markets

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