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: This paper examines the anticompetitive effects of land use regulation using microdata on mid-scale chain hotels in Texas. I construct a dynamic entry-exit model that endogenizes hotel chains' reactions to land use regulation. Estimation results indicate that imposing stringent regulation increases costs considerably. Hotel chains nonetheless enter highly regulated markets even if entry probabilities are lower, anticipating fewer rivals and hence greater market power. Consumers incur the costs of regulation indirectly in the form of high prices.

Keywords: Land use regulation; firms\' entry; lodging industry (search for similar items in EconPapers)
JEL-codes: L1 L5 R3 (search for similar items in EconPapers)
Pages: 48 pages
Date: 2010-10-21
New Economics Papers: this item is included in nep-agr, nep-com and nep-reg
References: View complete reference list from CitEc
Citations: View citations in EconPapers (24)

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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-412

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