Competition and Market Structure Reconsidered

A number of models of oligopoly in which long‐run equilibrium is given by zero profit are extended to examine further the extent to which the number of firms increases indefinitely with market size. The limitations of the modelling framework are critically assessed with particular emphasis on the neglect of competition through vertically integrated economic processes. As an alternative, it is suggested that competition and industrial structure would be better studied by differentiating vertically between the different “systems of provision” through which particular goods are supplied, taking account of the integral connections between chains of economic activity, rather than generalizing across sectors and the competition within them.