Concentration and competition are negatively related when shocks to entry costs play a dominant role in the data. This can result from changes in antitrust enforcement, barriers to entry, or the threat of predatory behavior by incumbents. If these explanations are correct, concentration should be negatively related to productivity and investment. Please share your thoughts on these arguments.

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The arguments presented suggest a negative relationship between concentration and productivityinvestment when shocks to entry costs are the dominant f... View the full answer