Original scientific paper
https://doi.org/10.1080/1331677X.2021.1889389
Testing the contestable market theory in eSports
Petr Parshakov
Elena Shakina
Angel Barajas
Abstract
This article contributes to the development of contestable market
theory by investigating how competitiveness in the eSports industry influences the size of this industry, as measured by the volume of monetary prizes. We use data on each gamer’s prize
earnings for each tournament from 1999 to 2015 to estimate
panel vector autoregression (V.A.R.) model with fixed effects. The
main finding is that competition does not increase industry size.
This result confirms the hypothesis from the contestable market
theory that perfect competition does not always facilitate better
development, especially in industries where natural barriers result
in a small number of leading firms or teams.
Keywords
industry size; contestable markets; eSports; video games; competition
Hrčak ID:
301679
URI
Publication date:
31.3.2023.
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