Quotation Götz, Georg, Gugler, Klaus. 2006. Mergers and product variety under spatial competition: Evidence from retail gasoline. Journal of Industry, Competition and Trade 6 (3): 225-234.


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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.

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Publication's profile

Status of publication Published
Affiliation WU
Type of publication Journal article
Journal Journal of Industry, Competition and Trade
Language English
Title Mergers and product variety under spatial competition: Evidence from retail gasoline
Volume 6
Number 3
Year 2006
Page from 225
Page to 234
Reviewed? Y

Associations

People
Gugler, Klaus (Details)
External
Götz, Georg (Universität Wien, Austria)
Research areas (ÖSTAT Classification 'Statistik Austria')
5370 Industrial economics (Details)
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