PRICE DYNAMICS AND COMPETITION
IN FIVE OECD COUNTRIES
David Encaoua and Paul Geroski
CONTENTS
1. Introduction . . . . . . . . . . . . . . . . . . . . . . . . . . . . 48
II. Themodel . . . . . . . . . . . . . . . . . . . . , . . . . . . . . 53
111. Some econometric results for five countries . . . . . . . . . . . . 57
A. Canada . . . . . . . . . . . . . . . . . . . . . . . . . . . . 57
B. Japan . . . . . . . . . . . . . . . . . . . . . . . . . . . . 59
C. United Kingdom . . . . . . . . . . . . . . . . . . . . . . . 59
D. United States . . . . . . . . . . . . . . . . . . . . . . . . 64
E. Sweden . . . . . . . . . . . . . . . . . . . . . . . . . . . 66
F. Summary . . . . . . . . . . . . . . . . . . . . . . . . . . . 66
IV. Concluding remarks . . . . . . . . . . . . . . . . . . . . . . . . 68
Bibliography . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 72
This paper was written by David Encaoua (University of Nantes and Paris I) and Paul Geroski (University of
Southampton). The research on which it is based was carried out at the OECD during the realization of the
project: Price Flexibility and Industrial Structure. The authors acknowledge in particular the contributions of
Riel Miller and Gerard Salou, the first being co-author of the report on this project "Price Dynamics and
Industrial Structure", OECD Working Paper No. 10, July 1983. The authors thank Henry Ergas for fruitful and
beneficial discussions.
,
47