Industry Structure,Strategy, and Public Policy. F. M. Scherer.

Review of Industrial Organization -     

An examination of industry exit patterns

Exit, like entry, must be unobstructed so that resource reallocation does follow changing market conditions. Indices of two potential barriers to exit are created in order to study their relationship to observed industry exit patterns. One, an index of the structural barrier, reflects the durability and specificity of the assets needed to produce the product. The other, an index of the corporate strategy barrier, reflects the complementarity of one product with other products the firms produce. The results strongly suggest that these barriers do impede the flow of resources out of certain industries.     

Market structure and the extent of suboptimal capacity, 1963–1972

Using survival technique estimates of minimum efficient plant size in 1963, 1967, and 1972, the extent of suboptimal capacity appears to be closely related to the market share required by a plant of minimum efficient size and to industry concentration.