Abstract

OSORIO NOVELA, Germán; MUNGARAY LAGARDA, Alejandro; AGUILAR BARCELO, José G  and  RAMIREZ ANGULO, Natanael. EXPLANATION OF THE COMPETITIVE BEHAVIOR OF SUBSISTENCE MICROENTERPRISES: EVIDENCE FOR MEXICO. Semest. Econ. [online]. 2018, vol.21, n.48, pp.127-150. ISSN 0120-6346.  https://doi.org/10.22395/seec.v21n48a5.

The objective of this paper is to discuss two elements necessary when analyzing the microenterprise sector: the need to rethink the theoretical frame of reference to represent its competitive behavior; and the relevance of differentiating them according to their nature, location and objectives. The methodology is based on contrasting empirical evidences and essential assumptions made by the industrial organization theory, as well as applying measuring instruments for the degree of strategic competence and microenterprise classification, based on a discrete logistic choice model. Results suggest that the competitive performance of an important subsector of microenterprises can be associated with models of imperfect competition, giving guidelines for their pertinent analysis.

JEL CLASSIFICATION: C50, D21, D41, D43, L11

Keywords : Microenterprise; market; perfect competition; imperfect competition; business classification.

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