Affiliation:
1. Birkbeck College University of London , IFS, and UK Competition Commission
2. UK Competition Commission
Abstract
AbstractThis paper considers the empirical assessment of the relationship between prices and number of firms in local markets in geographic or, more generally, characteristic space and its use as evidence in merger cases. It outlines a structural, semi-nonparametric econometric model of competition in such markets, examines its testable implications in terms of price-concentration relationships, and demonstrates that the model is non-parametrically identified. This general approach to price-concentration analysis in differentiated product markets is illustrated in a small-scale application to cinemas in the UK. The application highlights the main decision points faced by an authority when assessing the weight that can be attached to this type of analysis as evidence.
Subject
General Economics, Econometrics and Finance
Reference42 articles.
1. [1] Baker, J.B. (1999). “Econometric Methods on FTC vs. Staples”, Journal of Public Policy and Marketing, 18(1), 11–21.
2. [2] Baker, J.B. and T.F. Bresnahan (1992). “Empirical Methods of Identifying and Measuring Market Power”, Antitrust Law Journal, 61, 3–16.
3. [3] Berry, S.T. (1994). “Estimating Discrete-Choice Models of Product Differentiation”, Rand Journal of Economics, 25(2), 242–262.
4. [4] Berry, S.T., Levinsohn, J. and A. Pakes (1995). “Automobile Prices in Market Equilibrium”, Econometrica, 63(4), 841–890.
5. [5] Berry, S.T. and J. Waldfogel (1999). “Free Entry and Social Inefficiency in Radio Broadcasting”, RAND Journal of Economics, 30(3), 397–420.
Cited by
3 articles.
订阅此论文施引文献
订阅此论文施引文献，注册后可以免费订阅5篇论文的施引文献，订阅后可以查看论文全部施引文献