| 来源类型 | Discussion paper |
| 规范类型 | 论文 |
| 来源ID | DP8353 |
| DP8353 Entry and Competition in Differentiated Products Markets | |
| Frank Verboven; Catherine Schaumans | |
| 发表日期 | 2011-04-01 |
| 出版年 | 2011 |
| 语种 | 英语 |
| 摘要 | We propose a methodology for estimating the competition effects from entry when firms sell differentiated products. We first derive precise conditions under which Bresnahan and Reiss' entry threshold ratios (ETRs) can be used to test for the presence and to measure the magnitude of competition effects. We then show how to augment the traditional entry model with a revenue equation. This revenue equation serves to adjust the ETRs by the extent of market expansion from entry, and leads to unbiased estimates of the competition effects from entry. We apply our approach to seven different local service sectors. We find that entry typically leads to significant market expansion, implying that traditional ETRs may substantially underestimate the competition effects from entry. In most sectors, the second entrant reduces markups by at least 30%, whereas the third or subsequent entrants have smaller or insignificant effects. In one sector, we find that even the second entrant does not reduce markups, consistent with a recent decision by the competition authority. |
| 主题 | Industrial Organization |
| 关键词 | Competition Entry Local service sectors |
| URL | https://cepr.org/publications/dp8353 |
| 来源智库 | Centre for Economic Policy Research (United Kingdom) |
| 资源类型 | 智库出版物 |
| 条目标识符 | http://119.78.100.153/handle/2XGU8XDN/537180 |
| 推荐引用方式 GB/T 7714 | Frank Verboven,Catherine Schaumans. DP8353 Entry and Competition in Differentiated Products Markets. 2011. |
| 条目包含的文件 | 条目无相关文件。 | |||||
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