Economies of Scale, Industrial Structure and Efficiency: The Brewing Industry in Nine Nations

  • Anthony Cockerill
Part of the Nijenrode Studies in Economics book series (NIEC, volume 2)


There is now a considerable body of evidence to show that economies of scale exist across a wide range of manufacturing industries (Bain 1956, Haldi and Whitcomb 1969, Pratten and Dean 1965, Pratten 1971, Silberston 1972, Scherer 1975). Yet the average sizes of plants and firms within a given industry frequently vary substantially between countries and the variation of sizes around the mean is often considerable (Bain 1966, Cockerill 1974, Scherer 1975). This suggests that nations differ in the degree to which scale economies are taken up. Further, in most industrialized nations scale economies frequently extend to output levels which are a substantial fraction of overall domestic demand. To obtain the full benefits of scale requires only a limited number of suppliers. But this may cause a serious decline in the level of competition. At what point are the savings from increased scale offset by the reduction in competition?1A difficult problem is thus posed for the formulation of public policy towards industry. the dilemma, it should be noted, is typically more severe among the fragmented industries of Western Europe than in the integrated markets of the USA.2


Technical Efficiency Transport Cost Large Firm Plant Size Scale Economy 
These keywords were added by machine and not by the authors. This process is experimental and the keywords may be updated as the learning algorithm improves.


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Copyright information

© H. E. Stenfert Kroese B.V. 1977

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  • Anthony Cockerill

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