Structural Change and Competition in the United States Tire Industry, 1920–1937

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Abstract
In this case study, Dr. French examines the responses to overcapacity in a mass production industry and traces the development of oligopolistic competition. Previous studies have emphasized technology and the growth of “big business,” but here the author argues that the structure of the U.S. tire industry must be understood in terms of large, medium, and small firms. He finds, moreover, that the extent of competition and cooperation was significantly influenced by the nature of the tire market. Dr. French provides new evidence on the relationships between structural factors and the dynamics of business policy, and points to the need for a more comprehensive account of the evolution and nature of oligopolistic competition.