Spatial competition in the network television industry

• 成果类型: Article
• 署名作者: Goettler, RL; Shachar, R
• 署名单位: Carnegie Mellon University; Tel Aviv University
• 刊物名称: RAND JOURNAL OF ECONOMICS
• ISSN/ISSBN: 0741-6261
• DOI: 10.2307/2696385
• 发表日期: 2001
• 页码: 624-656
• 关键词: probit model; CHOICE; segmentation; tests

摘要

We present an empirical study of spatial competition and a methodology to estimate demand for products with unobservable characteristics. Using panel data, we estimate a discrete-choice model with latent-product attributes and unobserved heterogeneous consumer preferences. Our application of the methodology to the network television industry yields estimates that are consistent with experts' views. Given our estimates, we compute Nash equilibria of a product location game and find that firms' observed strategies (such as the degree of product differentiation) are generally optimal. Discrepancies between actual and optimal strategies reflect the networks' adherence to rules of thumb and, possibly, bounded rationality behavior.