INTRÄDE OCH PRISER PÅ KONCENTRERADE MARKNADER

Abstract

In this essay I measure the competitiveness of the Swedish market for dry cleaning for consumers. I do this by studying the number of producers and consumers on geographically separated markets. This is done according to a method originally established by economists Bresnahan and Reiss. I then compare my findings to price information that I obtain from the same market. The purpose of this comparison is to see if the results of the Bresnahan and Reiss method, with regards to the competitiveness of the market, are supported by the price information from the market. If they are, it would indicate that a reliable conclusion regarding the level of market competition can be drawn from Bresnahan and Reiss’ method. What I find is that the results of the Bresnahan and Reiss method do not show, with a sufficient degree of certainty, that the market is competitive. Likewise, the price information does not indicate competition between the firms in the market. Hence the price information does not contradict the results of Bresnahan and Reiss’ method. However, more studies are needed to find out to what extent Bresnahan and Reiss’ method is consistent with market prices with regards to the level of competition on concentrated markets.