Testing for Market Preemption Using Sequential Location Data
This study uses time series data on supermarket location to test locational implications of a theory of market preemption. The primary implication tested is that an established firm has an incentive to construct new plants in a market such that they are only bounded by other plants that it owns. It is found that the data are consistent with a state dependent stochastic process in which neighbor relations matter and also that the underlying probabilities of the process are consistent with the existence of preemptive firm behavior.
Year of publication: |
1981
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Authors: | West, Douglas S. |
Published in: |
Bell Journal of Economics. - The RAND Corporation, ISSN 0361-915X. - Vol. 12.1981, 1, p. 129-143
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Publisher: |
The RAND Corporation |
Saved in:
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