Demand Fluctuations and Plant Turnover in the Ready-Mix Concrete Industry

@inproceedings{CollardWexler2006DemandFA,
  title={Demand Fluctuations and Plant Turnover in the Ready-Mix Concrete Industry},
  author={Allan Collard-Wexler},
  year={2006}
}
  • Allan Collard-Wexler
  • Published 2006
Fluctuations in demand cause some plants to exit a market and other to enter. Would eliminating these fluctuations reduce plant turnover? A structural model of entry and exit in concentrated markets is estimated for the ready-mix concrete industry, using plant level data from the U.S. Census. The Nested Pseudo-Likelihood algorithm is used to find parameters which rationalize behavior of firms involved in repeated competition. Due to high sunk costs, turnover rates would only be reduced by 3% by… CONTINUE READING
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