Schaumans, C.B.C.; Verboven, F.L. - Tilburg University, Center for Economic Research - 2011
We propose a methodology for estimating the competition effects from entry when firms sell differentiated products. We … presence and to measure the magnitude of competition effects. We then show how to augment the traditional entry model with a … unbiased estimates of the competition effects from entry. We apply our approach to seven different local service sectors. We …