Price-concentration analysis in merger cases with differentiated products

Walter Beckert () and Nicola Mazzarotto

No 2010-5, Economics Discussion Papers from Kiel Institute for the World Economy (IfW Kiel)

Abstract: This paper considers the empirical assessment of the relationship between prices and number of firms in local markets in geographic or, more generally, characteristic space and its use as evidence in merger cases. It outlines a structural, semi-nonparametric econometric model of competition in such markets, examines its testable implications in terms of price-concentration relationships, and demonstrates that the model is non-parametrically identified. This general approach to priceconcentration analysis in differentiated product markets is illustrated in a small-scale application to cinemas in the UK. The application highlights the main decision points faced by an authority when assessing the weight that can be attached to this type of analysis as evidence.

Keywords: Differentiated products; local competition; non-parametric identification (search for similar items in EconPapers)
JEL-codes: C31 L11 (search for similar items in EconPapers)
Date: 2010
New Economics Papers: this item is included in nep-com and nep-ind
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Citations: View citations in EconPapers (2)

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https://www.econstor.eu/bitstream/10419/29629/1/616815964.pdf (application/pdf)

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Persistent link: https://EconPapers.repec.org/RePEc:zbw:ifwedp:20105

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