Market Concentration and Product Variety under Spatial Competition: Evidence from Retail Gasoline

被引:0
|
作者
Georg Götz
Klaus Gugler
机构
[1] University of Vienna,Department of Economics
关键词
spatial product differentiation; retail gasoline; mergers; concentration; L11; L13; L90;
D O I
10.1007/s10842-006-0025-z
中图分类号
学科分类号
摘要
We show that for a spatially differentiated economy reduced product variety is the likely outcome of mergers except in cases where exit costs in relation to (outlet specific) fixed costs are high. Our empirical analysis of the Austrian retail gasoline market confirms that increases in concentration reduce product variety. Ignoring this product variety effect is likely to lead to an underestimate of market power in structural merger analysis.
引用
收藏
页码:225 / 234
页数:9
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