The structure, conduct, and performance of Nevada's slot route industry
type: CreativeWork
description: The four largest firms in the Nevada slot route industry control over 70 percent of the industry. Its structure was shown to be highly concentrated using the Herfindahl-Herschman index; The individual slot route operators appear to conduct themselves in a non-competitive manner by differentiating their respective products. Each firm in the industry established their own niche either through product or service differentiation; Firms in concentrated industries tend to earn monopoly profits. Yet, using Tobin's q and Jensen's coefficient, we show that Nevada's slot route firms did not earn excess profits, despite the high degree of industrial concentration; The presence of a high level of industrial concentration, non-competitive product differentiation, and the lack of economic profits may be explained in large measure by competition from casinos. The inclusion of slot route firms within a more broadly defined Nevada gaming industry would decrease concentration measures consistent with competitive market performance conditions found in this study.
abstract: The four largest firms in the Nevada slot route industry control over 70 percent of the industry. Its structure was shown to be highly concentrated using the Herfindahl-Herschman index; The individual slot route operators appear to conduct themselves in a non-competitive manner by differentiating their respective products. Each firm in the industry established their own niche either through product or service differentiation; Firms in concentrated industries tend to earn monopoly profits. Yet, using Tobin's q and Jensen's coefficient, we show that Nevada's slot route firms did not earn excess profits, despite the high degree of industrial concentration; The presence of a high level of industrial concentration, non-competitive product differentiation, and the lack of economic profits may be explained in large measure by competition from casinos. The inclusion of slot route firms within a more broadly defined Nevada gaming industry would decrease concentration measures consistent with competitive market performance conditions found in this study.
author: Dell'Orto, Benedict
language: English
date published: 1992-01-01T08:00:00Z
date modified: 2026-07-24T05:24:15Z
provider: University of Nevada - Las Vegas
publisher: Networked Digital Library of Theses and Dissertations
type: WebPage
source organization: University of Nevada, Las Vegas

PropertyValue
property ID: DOI
value: 10.25669/003f-524k