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.
Keywords: Competition; Markets;
File(s): File format is application/pdf https://web.archive.org/web/20220909041807/https://www.chicagofed.org/-/media/publications/economic-perspectives/2004/ep-2-qtr-2004-part-4-pdf.pdf
Provider: Federal Reserve Bank of Chicago
Part of Series: Economic Perspectives
Publication Date: 2004
Issue: Q II