Building on the current theory of industrial concentration, we analyze the relation between market size and product differentiation, and show how product differentiation impacts market share turbulence. We first propose that in markets where vertical product differentiation dominates, firms will...

The focus of this paper is the impact of European integration in the soft drinks industry. It is shown that the geographic level at which competition takes place has moved from the national to the European stage. We apply the new theory of industrial structure where the essential notion is that...

Unlike previous cross-section studies which test predictions from the theory of industrial structure, we do not make an ex ante assumption about the geographical market at which competition takes place. We develop an econometric technique that endogenously determines whether the EU or member...

Recent developments in the literature on market structure have allowed the generation of a few key testable predictions from the theory of strategic behavior. The seminal model considers one simple but general relationship, that between market structure and market size, focusing on the...