Relatedness and Industry Structure
10 December 2009 at 9:54 am Lasse 3 comments
| Lasse Lien |
According to this, shameless self-promotion is OK. So here is a recent Lien and Foss paper (from MDE). The abstract goes as follows:
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.
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Organizations and Markets 
1.
Niklas Hallberg | 11 December 2009 at 5:18 am
On a related issue. The relationship between factor and product markets has lately been given some attention in strategic management (e.g. cooperative game theory approaches). So what about vertical market relationships and the correlation of concentration levels between up and down stream industries? Can anyone recommend some good studies on this?
2.
Lasse | 11 December 2009 at 7:06 am
Hi Niklas,
I cannot recall seeing any empirical work that adresses vertical relations specifically. Our work does not distinguish vertical from horisontal relatedness, but lumps them both together. A paper comparing and contrasting the impact of vertical and horisontal relatedness on market structure sounds like a worthwhile project…
3.
srp | 11 December 2009 at 10:55 pm
That would be the old Galbraith “American Capitalism” thesis about countervailing power in vertical chains…the first and last piece of serious scholarship he ever performed.