Spatial price competition: A semiparametric approach

• 成果类型: Article
• 署名作者: Pinske, J; Slade, ME; Brett, C
• 署名单位: University of British Columbia; University of London; Royal Holloway University London
• 刊物名称: ECONOMETRICA
• ISSN/ISSBN: 0012-9682
• 发表日期: 2002
• 页码: 1111-1153
• 关键词: american automobile-industry; discrete-choice models; monopolistic competition; differentiated products; HETEROSKEDASTICITY-CONSISTENT; MARKET; gasoline; QUALITY; mergers; demand

摘要

We investigate the nature of price competition among firms that produce differentiated products and compete in markets that are limited in extent. We propose an instrumental variables series estimator for the matrix of cross price response coefficients, demonstrate that our estimator is consistent, and derive its asymptotic distribution. Our semiparametric approach allows us to discriminate among models of global competition, in which all products compete with all others, and local competition, in which products compete only with their neighbors. We apply our semiparametric estimator to data from U.S. wholesale gasoline markets and find that, in this market, competition is highly localized.