Does Market Concentration Promote or Reduce New Product Introductions? Evidence from US Processed Food Industry

Posted: 21 Nov 2008

See all articles by Haimanti Bhattacharya

Haimanti Bhattacharya

University of Utah

Robert Innes

University of Arizona - Department of Agricultural and Resource Economics

Date Written: November 19, 2008

Abstract

This study presents an empirical test of the relationship between market concentration and new product introductions. The analysis uses an annual panel data set of the US processed food industry that spans across the period 1983 to 2004. The estimations depict that market concentration increases new product introductions and product introductions spur subsequent mergers. These results provide evidence in support of the new 'anticipatory merger theory', which predicts new product introductions to occur in anticipation of future mergers.

Keywords: New Product Introductions, Market Concentration, Mergers

JEL Classification: L1, L2, L66

Suggested Citation

Bhattacharya, Haimanti and Innes, Robert D., Does Market Concentration Promote or Reduce New Product Introductions? Evidence from US Processed Food Industry (November 19, 2008). Available at SSRN: https://ssrn.com/abstract=1304250

Haimanti Bhattacharya (Contact Author)

University of Utah ( email )

Department of Economics
1645 E Campus Center Drive, #308
Salt Lake City, UT 84112
United States

HOME PAGE: http://www.econ.utah.edu/~bhattacharya

Robert D. Innes

University of Arizona - Department of Agricultural and Resource Economics ( email )

1110 E. North Campus Drive
Tucson, AZ 85721-0023
United States
520-621-9741 (Phone)
520-621-6250 (Fax)

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