Advanced Industrial Economics (II)
Instructor: Chih-Hai Yang
February 2005
Office: Ba827a
Institute of Industrial Economics
Tel: (02)26215656 ext 3346
Tamkang University
E-mail: chyang@mail.tku.edu.tw
Syllabus
I. Market Concentration
A. Concentration Ratio
1. Siegfried, J.J. (1975), In Defense of the Average Concentration Ratio, Journal of
Political Economy, 83(6), 1269-1276.
2. Curry, B. and K.D. George (1983), Industrial Concentration: A Survey, Journal
of Industrial Economics, 31(3), 203-255.
3. Michelini, C. and M. Pickford (1985), Estimating the Herfindahl Index from
Concentration Ratio Data, Journal of the American Statistical Association, 80,
301-305.
4. Sleuwaegen, L.E. and W.V. Dehandschutter (1986), The Critical Choice between
the Concentration Ratio and the H-Index in Assessing Industry Performance,
Journal of Industrial Economics, 35(2), 193-208.
5. Amato, L. (1995), The Choice of Structure Measure in Industrial Economics,
Quarterly Journal of Business and Economics, 34(2), 39-52.
6. Golan, A., G. Judge and J.M. Perloff (1996), Estimating the Size Distribution of
Firms Using Government Summary Statistics, Journal of Industrial Economics,
44(1), 69-80.
7. McCloughan, P. and E. Abounoori (2003), How to Estimate Market
Concentration Given Grouped Data, Applied Economics, 35(8), 973-983.
B. Endogenous and Dynamic of Market Structure
1. Geroski, P.A. and R.T. Masson (1987), Dynamic Market Models in Industrial
Organization, International Journal of Industrial Organization, 5(1), 1-13.
2. Geroski, P.A., R.T. Masson and J. Shaanon (1987), The Dynamics of Market
Structure, International Journal of Industrial Organization, 5(1), 93-100.
3. Geroski, P.A. and R. Pomory (1990), Innovation and the Evolution of Market
Structure, Journal of Industrial Economics, 38(3), 299-314.
4. Vega-Redondo, F. (1996), Technological Change and Market Structure: An
Evolutionary Approach, International Journal of Industrial Organization, 14(2),
203-226.
5. Robinson, W.T. and J. Chiang (1996), Are Sutton’s Predictions Robust?:
Empirical Insights into Advertising, R&D, and Concentration, Journal of
Industrial Economics, 44, 389-408.
6. Matraves, C. (1999), Market Structure, R&D and Advertising in the
Pharmaceutical Industry, Journal of Industrial Economics, 47, 169-194.
7. Symeonidis, G. (2000), Price Competition and Market Structure: The Impact of
Cartel Policy on Concentration in the U.K., Journal of Industrial Economics, 48,
1-26.
8. Scherer, F.M. (2000), Professor Sutton’s Technology and Market Structure,
Journal of Industrial Economics, 215-223.
II. Entry and Exit
A. Theoretical Literature
1. Gaskins, D. (1971), Dynamic Limit Pricing: Optimal Pricing under the Threat of
Entry, Journal of Economic Theory, 31, 227-250.
2. Orr, D. (1974), The Determinants of Entry: A Study of the Canadian
Manufacturing Industries, Review of Economics and Statistics, 56(1), 58-66.
3. Caves, R.E. and M.E. Porter (1977), From Entry Barriers to Mobility Barriers:
Conjectural Decisions and Contrived Deterrence to New Competition, Quarterly
Journal of Economics, 9, 243-261.
4. Spence, M. (1979), Investment Strategy and Growth in a New Market, Bell
Journal of Economics, 10, 1-19.
5. Dixit, A. (1980), The Role of Investment in Entry-Deterrence, Economic Journal,
6.
7.
8.
9.
90, 95-106.
Jovanovic, B. (1982), Selection and the Evolution of Industry, Econometrica,
50(3), 649-670..
Milgrom, P. and J. Roberts (1982), Predation, Reputation, and Entry Deterrence,
Journal of Economic Theory, 27, 280-312.
Bresnahan, T.F. and P.C. Reiss (1990), Entry in Monopoly Markets, Review of
Economics Studies, 57(4), 531-553.
Berry, S.T. (1992), Estimation of a Model of Entry in the Airline Industry,
Econometrica, 60(4), 889-918.
10. Hopenhayn, H. (1992), Entry, Exit, and Firm Dynamics in Long Run
Equilibrium, Econometrica, 60, 1127-1150.
B. Empirical Literature
1. Geroski, P.A. (1995), What Do We Know about Entry, International Journal of
Industrial Organization, 13(4), 421-440.
2. Mata, J. (1993), Entry and Type of Entrant: Evidence from Portugal,
International Journal of Industrial Organization, 11, 101-122.
3. Singh, S., M. Utton and M. Waterson (1998), Strategic Behaviour of Incumbent
Firms in the UK, International Journal of Industrial Organization, 16(2),
229-252.
4. Fotopoulos, G. and N. Spence (1999), Net Entry Behaviour in Greek
Manufacturing: Consumer, Intermediate and Capital Good Industries,
International Journal of Industrial Organization, 17(8), 1219-1230.
5. Thomas, L.A. (1999), Incumbent Firms’ Response to Entry: Price, Advertising,
and New Product Introduction, International Journal of Industrial Organization,
17(4), 527-555.
6. Mayer, W.J. and W.F. Chappell (1992), Determinants of Entry and Exit: An
Application of the Compounded Bivariate Poisson Distribution to U.S. Industries,
1972-1977, Southern Economic Journal, 58(3), 770-778.
7. Ilmakunnas, P. and J. Topi (1999), Microeconomic and Macroeconomic
Influences on Entry and Exit of Firms, Review of Industrial Organization, 15,
283-301.
8. Dunne, T., M. Roberts and L. Samuelson (1988), Patterns of Firm Entry and Exit
in US Manufacturing Industries, RAND Journal of Economics, 19, 495-515.
9. Yang, Chih-Hai (2003), Entrepreneurship? What Factors Inspire the High Entry
Flow in Taiwan’s Manufacturing Industries, mimeo.
III. Schumpeterian Issues of Market Structure and Innovation
1. Horowitz, I. (1962), Firm Size and Research Activity, Southern Economic
2.
3.
4.
5.
Journal, 28, 298-301.
Scherer, F.M. (1965), Firm Size, Market Structure, Opportunity and the Output
of Patented Inventions, American Economic Review, 55, 1097-1125.
Cohen, W., R. Levin and D. Mowery (1987), Firm Size and R&D Intensity: A
Reexamination, Journal of Industrial Economics, 35, 543-563.
Carlton, D. and R. Gertner (2002), Intellectual Property, Antitrust, and Strategic
Behavior, NBER Working Paper, No. 8796.
Symeonidis, G. (1996), Innovation, Firm Size and Market Structure:
Schumpeterian Hypotheses and Some New Themes, OECD Economics
Department Working Paper, No. 161.
6. Aghion, P., N. Bloom, R. Blundell, R. Griffith and P. Howitt (2002), Competition
and Innovation: an Inverted U Relationship, Institute for Fiscal Studies Working
Paper 02/04.
7. Blundell, R., R. Griffith and J. Van Reenen (1999), Market Share, Market Value
and Innovation in a Panel of British Manufacturing Firms, Review of Economic
Studies, 66, 529-554.
8. Nickell, S. (1996), Competition and Corporate Performance, Journal of Political
Economy, 104, 724-746.
9. Scherer, F.M. (1992), Schumpeter and Plausible Capitalism, Journal of
Economic Literature, 30, 1416-1433.
10. Gruber, H. (1992), Persistence of Leadership in Product Innovation, Journal of
Industrial Economics, 40, 359-375.
IV. R&D
1. Klette, T.J. and Z. Griliches (2000), Empirical Patterns of Firm Growth and R&D
Investment: A Quality Ladder Model Interpretation, Economic Journal, 110,
363-387.
2. Thompson, P. (2001), The Microeconomics of an R&D-Based Model of
Endogenous Growth, Journal of Economic Growth, 6, 263-283.
VIII. TRIPS
1. Lall, S. and M. Albaladejo (2002), Indicators of the Relative Importance of IPRs
in Developing Countries, Queen Elizabeth House Working Paper QEHWPS85,
Oxford.
2. Coe, D., E. Helpman and A. Hoffmaister (1997), North-South R&D Spillovers,
Economic Journal, 107, 134-149.
3. Lee, J. and E. Mansfield (1996), Intellectual Property Protection and US Foreign
Direct Investment, Review of Economics and Statistics, 78, 181-186.
4. Yang, G. and K. Maskus (2001), Intellectual Property Rights, Licensing, and
Innovation in an Endogenous Product Cycle Model, Journal of International
Economics, 53, 169-187.
5. Ferrantino, M. (1993), The Effect of Intellectual Property Rights on International
Trade and Investment, Weltwirtschaftliches Archiv, 129, 300-331.
6. Maskus, K.E., Penubarti, M., (1995), How Trade-Related Are Intellectual Property
Rights? Journal of International Economics 39, 227-248.
7. Smith, P.J. (2001), How do Foreign Patent Rights Affect U.S. Exports, Affiliate
Sales, and Licenses? Journal of International Economics, 55, 411-439.
8. Taylor, M.S. (1993), TRIPS, Trade and Technology Transfer. Canadian Journal of
Economics, 26, 625-637.