The determinants of industry concentration: two new empirical regularities |
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| Authors: | Lasse B Lien Nicolai J Foss |
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| Institution: | 1. Department of Strategy and Management, Norwegian School of Economics and Business Administration, Bergen, Norway;2. Center for Strategic Management and Globalization, Copenhagen Business School, Frederiksberg, Denmark |
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| Abstract: | This paper reports two new empirical regularities concerning industry concentration. First, concentration levels closely correlate in related industries. Second, the correlation is moderated by the degree of relatedness between the industries. These regularities are derived from the Trinet database, using a survivor‐based measure of relatedness. We argue that these previously overlooked relations may be explained in terms of (1) ‘spillover effects’ between industries and (2) life cycle factors. Copyright © 2009 John Wiley & Sons, Ltd. |
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