Market Concentration and Product Variety under Spatial Competition: Evidence from Retail Gasoline

Georg Goetz and Klaus Gugler ()
Authors registered in the RePEc Author Service: Georg Götz

No 1289, CESifo Working Paper Series from CESifo

Abstract: We show that for a spatially differentiated economy reduced product variety is the likely outcome of mergers except in cases where exit costs in relation to (outlet-specific) fixed costs are high. Our empirical analysis of the Austrian retail gasoline market confirms that increases in concentration reduce product variety. Ignoring this product variety effect is likely to lead to an underestimate of market power in structural merger analysis.

Keywords: spatial product differentiation; retail gasoline; mergers; concentration (search for similar items in EconPapers)
Date: 2004
New Economics Papers: this item is included in nep-com and nep-ure
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (3)

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Journal Article: Market Concentration and Product Variety under Spatial Competition: Evidence from Retail Gasoline (2006)
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Persistent link: https://EconPapers.repec.org/RePEc:ces:ceswps:_1289

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