Creative destruction in local markets
Abstract: This article uses a panel of Texas restaurants' and bars' alcohol to measure the pace of creative destruction--the ongoing replacement of unproductive competitors with the new firms--and it investigates whether producers in more concentrated markets might use their market power to stabilize the industry structure. The authors find the opposite to be true: Local markets with more concentrated alcohol sales display more creative destruction.
File(s): File format is application/pdf http://www.chicagofed.org/digital_assets/publications/economic_perspectives/2004/ep_2Qtr_2004_Part_4.pdf
Provider: Federal Reserve Bank of Chicago
Part of Series: Economic Perspectives
Publication Date: 2004
Issue: Q II