Land Use Regulation as a Barrier to Entry: Evidence from the Texas Lodging Industry

Junichi Suzuki

Working Papers from University of Toronto, Department of Economics

Abstract: I empirically examines the anticompetitive effects of land use regulation by using microdata on midscale chain hotels in Texas. I construct a dynamic entry-exit model of midscale hotel chains. By endogenizing their entry decisions, the model explicitly considers hotel chains' reactions to the stringency of land use regulation. Estimation results indicate that imposing stringent regulation increases cost enough to affect hotel chains' entry decisions. Although hotel chains are the immediate payers of the increased entry cost, incumbents shift a part of their cost increase onto consumers by exploiting their increased market power. (JEL: R3, L1, L5)

Keywords: Land use regulation; zoning; barrier to entry; lodging industry (search for similar items in EconPapers)
JEL-codes: L1 L5 R3 (search for similar items in EconPapers)
Pages: 45 pages
Date: 2010-04-01
New Economics Papers: this item is included in nep-agr, nep-com, nep-reg and nep-ure
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Citations: View citations in EconPapers (11)

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Related works:
Journal Article: LAND USE REGULATION AS A BARRIER TO ENTRY: EVIDENCE FROM THE TEXAS LODGING INDUSTRY (2013)
Working Paper: Land Use Regulation as a Barrier to Entry: Evidence from the Texas Lodging Industry (2010)
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Persistent link: https://EconPapers.repec.org/RePEc:tor:tecipa:tecipa-400

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