Why do prices in Spain's regions fail to converge? The prime suspects for this puzzling result are differences in … illustrate the effect of barriers on prices. A unique data set-derived from an extensive analysis of competition policies in … Spain- provides evidence that barriers to entry increase regional prices. The evidence also suggests that, consistent with …

estimates are potentially inefficient and open to omitted variable bias for two reasons. First, they use average prices across … outlets as the left-hand-side variable. Second, quality-adjusted prices of non-comparable replacements, required when products …