Abstract
In this paper, the authors apply the theory of industrial organization to the French manufacturing sector. Profit rates of industries and firms are related to concentration on the product market, differentiation, economies of scale, absolute capital cost requirements and to firm sizes. The analysis suggest that concentration on the seller's side may lead to misallocation of resources in industries in which barriers to entry are high. They also suggest that large firms may be less efficient than smaller firms. These results call into question the industrial policy of the French government over the last ten years.
Sign-in/Register to access full text options 
Talk to us
Join us for a 30 min session where you can share your feedback and ask us any queries you have
Schedule a callDisclaimer: All third-party content on this website/platform is and will remain the property of their respective owners and is provided on "as is" basis without any warranties, express or implied. Use of third-party content does not indicate any affiliation, sponsorship with or endorsement by them. Any references to third-party content is to identify the corresponding services and shall be considered fair use under The CopyrightLaw.
