Thursday, July 8, 2010
A micro-econometric approach to geographic market definition in local retail markets: Demand side considerations
Posted by D. Daniel Sokol
Walter Beckert (Birkbeck College, University of London, IFS, and UK Competition Commission) discusses A micro-econometric approach to geographic market definition in local retail markets: Demand side considerations.
ABSTRACT: This paper formalizes an empirically implementable framework for the definition of local antitrust markets in retail markets. This framework rests on a demand model that captures the trade-off between distance and pecuniary cost across alternative shopping destinations within local markets. The paper develops, and presents estimation results for, an empirical demand model at the store level for groceries in the UK.