Mergers and product variety under spatial competition: Evidence from retail gasoline

Georg Götz, Klaus Gugler

Publikation: Wissenschaftliche FachzeitschriftOriginalbeitrag in FachzeitschriftBegutachtung

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.
OriginalspracheEnglisch
Seiten (von - bis)225 - 234
FachzeitschriftJournal of Industry, Competition and Trade
Jahrgang6
Ausgabenummer3
PublikationsstatusVeröffentlicht - 1 Dez. 2006

Österreichische Systematik der Wissenschaftszweige (ÖFOS)

  • 502013 Industrieökonomik

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