The effect of ownership structure on prices in geographically differentiated industries

• 成果类型: Article
• 署名作者: Thomadsen, Raphael
• 署名单位: University of California System; University of California Los Angeles
• 刊物名称: RAND JOURNAL OF ECONOMICS
• ISSN/ISSBN: 0741-6261
• 发表日期: 2005
• 页码: 908-929
• 关键词: market; PRODUCTS; mergers

摘要

I analyze how ownership structure and market geography jointly influence fast food prices. I estimate a model of demand and supply that accounts for the market geography and run counterfactual experiments that demonstrate how mergers affect prices. I find that the impact of mergers can be large, that this impact decreases as the merging outlets are farther apart, that mergers among market leaders generally increase prices more than mergers among weaker firms, and that mergers can increase prices even if the outlets are so far apart that neither outlet's presence affects prices at the other before the merger.