Are Monopoly Supply Chains More Resilient? Evidence From an International Survey of Defense Supply Chains
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While firm-level surveys and econometric studies have successfully demonstrated that tactics grounded in production theory can be quantified and compared via objective metrics like the Resilience Metric (RM) and Benefit–Cost Ratio (BCR), a critical gap remains: resilience outcomes depend not only on firm-level tactics but also on the structure of the markets in which firms operate. This paper’s focus on market structure and economic resilience advances the Structure-Conduct-Performance (SCP) paradigm in industrial organization (IO) theory by linking market structure to resilience outcomes and emphasizing firm conduct through the resilience tactic framework. This is my job market paper for the 2026/2027 cycle.
We examine how a focal firm’s market power enhances its baseline resilience.
In the upstream market, a firm with a diverse supplier base exercises greater bargaining power over critical inputs, thereby minimizing its dependence on any single supplier.
Conversely, relying on a narrow supplier base shifts this power to the suppliers, rendering the focal firm highly dependent.
In the downstream product market, we evaluate the firm’s relationship with its customers through the lens of competitive density. When a focal firm faces few competitors, it commands greater market power, which consequently reduces its dependence on customers to secure financial resources.
Grounded in the Structure-Conduct-Performance (SCP) paradigm, this study integrates the RDT framework with a resilience approach rooted in production theory
Paper Abstract:
Paper Abstract:
(To be updated)
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