Inter-firm rivalry and firm growth: Is there any evidence of direct competition between firms?

Alex Coad, Mercedes Teruel

Research output: Contribution to journalArticle

11 Citations (Scopus)

Abstract

Inter-firm competition has received much attention in the theoretical literature, but recent empirical work suggests that the growth rates of rival firms are uncorrelated. We begin by investigating the correlations of the growth rates of competing firms (i.e. the largest and second-largest firms in the same industry) and observe that, surprisingly, the growth of these firms can be taken as uncorrelated. Nevertheless, peer-effect regressions, that take into account the simultaneous interdependence of growth rates of rival firms, are able to identify significant negative effects of rivals' growth on a firm's growth

Original languageEnglish
Article numberdts018
Pages (from-to)397-425
Number of pages29
JournalIndustrial and Corporate Change
Volume22
Issue number2
DOIs
Publication statusPublished - 2013 Apr

ASJC Scopus subject areas

  • Economics and Econometrics

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