Abstract

The purpose of this study is to provide an econometric characterization of the dynamic interrelationship among structure, conduct and performance variables with a vector autoregressive (VAR) model. Particular attention will be given to the causality and response patterns of the variable involved. In the light of our desire to ascertain descriptive characterizations of historical behaviour, we let the data speak for itself. The result suggests a weak realtionship existing between market structure and profitability.

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