COMPETITION AND PROFITABILITY
COMPETITION AND PROFITABILITY

Author(s): Ondřej Krčál
Subject(s): Business Economy / Management, Evaluation research
Published by: Masarykova univerzita nakladatelství
Keywords: Competition; Profitability; Price-Cost Margin; Relative Profits; Relative Profit Differences;
Summary/Abstract: In this paper, we investigate relationship between competition and profitability. We define dynamic and static competition and review economic literature about persistence and sources of profits. Moreover, we compare measures of competition based on profitability and relative profits. We argue that profitability measures are more suitable for firms with similar efficiency and for the long–run studies and inter–industry comparisons.

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