Merger control in differentiated product industries
Patrick Walsh () and
Open Access publications from School of Economics, University College Dublin
Given that brands (products) are location specific in terms of coverage of retail stores, we allow consumers to have preferences over location and products to carry distribution costs, alongside preferences and costs over other observable and unobservable product characteristics. We embed these considerations into Berry, Levinsohn and Pakes (1995) to jointly estimate demand and cost parameters for brands (products) in Retail Carbonated Soft Drinks. Allowing for location has a very significant impact on estimated primitives and the predictive power of the structural model. As a counterfactual exercise we show the effects on welfare of an equilibrium that results from a change in the distribution of consumer taste for location.
Keywords: Consumer taste for location distributions; Differentiated products; Discrete choice; Structural model; Consumers' preferences; Product differentiation; Store location (search for similar items in EconPapers)
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Published in: Choi, Jay Pil (Ed.). Recent Developments in Antitrust: Theory and Evidence.. MIT Press Journals - Massachusets Institute, 2006
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http://hdl.handle.net/10197/137 Open Access version, 2006 (application/pdf)
Working Paper: Merger control in differentiated product industries (2005)
Working Paper: EU Merger Control in Differentiated Product Industries (2004)
Working Paper: EU merger control in differentiated product industries (2004)
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Persistent link: https://EconPapers.repec.org/RePEc:ucn:oapubs:10197/137
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