What are the empirical lists of the Porter hypothesis?

Answers

The Porter Hypothesis is a hypothesis proposed in 1980 by Michael E. Porter, which states that companies with a higher concentration of market share will outperform those with lower concentrations of market share. The empirical lists of the Porter Hypothesis include: 1. Companies with a higher concentration of market share are more successful than those with a lower concentration of market share. 2. Markets where competition is limited, usually by industry structure, generate higher returns for the market leader. 3. High levels of competitive rivalry among a few firms can lead to reduced returns for all firms in the market, and this may be related to the cycle of aggressive price competition, increased promotional intensity, and product proliferation. 4. Concentration of market share can lead to increased pricing power, synergies from economies of scale, and higher levels of innovation. 5. Predatory pricing strategies can lead to increased market share and returns for the perpetrator, but to reduced returns for other firms in the industry.

Answered by Regina

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