Abstract
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.
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.
Originalsprache | Englisch |
---|---|
Seiten (von - bis) | 225 - 234 |
Fachzeitschrift | Journal of Industry, Competition and Trade |
Jahrgang | 6 |
Ausgabenummer | 3 |
Publikationsstatus | Veröffentlicht - 1 Dez. 2006 |
Österreichische Systematik der Wissenschaftszweige (ÖFOS)
- 502013 Industrieökonomik