Market structure and entry: Where's the beef?

• 成果类型: Article
• 署名作者: Toivanen, O; Waterson, M
• 署名单位: University of Helsinki; University of Warwick
• 刊物名称: RAND JOURNAL OF ECONOMICS
• ISSN/ISSBN: 0741-6261
• 发表日期: 2005
• 页码: 680-699
• 关键词: industry; models; COMPETITION; simulation; CHOICE

摘要

We study the effects of market structure on entry using data from the U.K.. fast food (counterservice burger) industry over the years 1991-1995, for which the market can be characterized as a duopoly. We use both reduced-form estimations and a structural model, controlling for market-specific time-invariant unobservables. For both firms, we find that market structure matters greatly. Specifically, rival presence increases the probability of entry by increasing expected market size, whereas variable profits per customer are increasing in the number of own outlets. Our results suggest the presence of product differentiation, firm learning, and market power.