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We develop an estimator for models of competition among spatially differentiated firms. In contrast to existing methods (e.g., Houde (2009)), the estimator has flexible data requirements and is implementable with data that are observed at any level of aggregation. Further, the estimator is the...
Persistent link: https://www.econbiz.de/10012975988
The theoretical literature of industrial organization shows that the distances between consumers and firms have first-order implications for competitive outcomes whenever transportation costs are large. To assess these effects empirically, we develop a structural model of competition among...
Persistent link: https://www.econbiz.de/10013143884
I model multimarket competition when consumers value firm scope across markets. Such competition is surprisingly common - consumers in many industries prefer firms that operate in more geographic and/or product markets. I show that these preferences permit firms of differing scopes to coexist in...
Persistent link: https://www.econbiz.de/10014215078