Book Series
Theories of the Firm
Fifth Edition
Demetri Kantarelis

Appendix III: Buyers, sellers, and price cost margins in manufacturing industries

287-296In this paper, we utilise the 1977 input-output table and census data for the manufacturing industries of the USA to reexamine the links between seller and buyer power and price cost margins (PCM). We use both Herfindahl-based and conventional four-firm, eight-firm, and 20-firm concentration ratio-based measures. In addition to updating, we are concerned with: (1) the belief of previous researchers that high concentration on one side of the market generates high concentration on the other (2) the effectiveness of buying power (3) the impact of the final demand sectors on the links between seller and buyer power and PCM.
1 Sample selection
2 Links between buyer and seller power and PCM
2.1 Herfindahl measures
2.2 Concentration ratio measures
3 Summary and conclusions
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