Distribution, efficiency and market power : a study of the U.K. manufacturing sector, 1954-1973

The Thesis is an investigation into the relationship between market structure and profitability. First, existing oligopoly and entry-threat theories are examined and found not to provide a plausible basis for a durable structure-profitability link. Then an alternative model is set up, based on bargaining concepts. This model is successfully tested with data on UK manufacturing industries from five Censuses of Production between 1954 and 1973. Market power is found to be responsible for durable monopoly profits. Finally, an analysis is undertaken, following Salter, of rates of change of some dimensions of market performance, and the implications outlined for policy and economic welfare of these and the previous results