2014/10/01 by Matthias Firgo, Firgo, Matthias, Agnes Kügler +1
Business, Management and Accounting · Economics, Econometrics and Finance · #Consumer Market Behavior and Pricing #Merger and Competition Analysis #Spatial and Panel Data Analysis
paper · pdf · doi:10.57938/08f48c2d-17b4-449c-994e-bfb99cc3c8a0
openalex publication_date 2014/10/01 · openalex created_date 2025/10/10 · openalex updated_date 2026/07/23
The empirical literature on mergers, market power and collusion in differentiated markets has mainly focused on <br/>methods relying on output and/or panel data. In contrast to this literature we suggest a novel approach that allows for <br/>the detection of collusive behavior among a group of firms making use of information on the spatial structure of horizontally differentiated products. By estimating best response functions using a spatial econometrics approach, we focus on differences in the strategic interaction in pricing between different groups of firms as well as on differences in price levels. We apply our method to the market for ski lift tickets using a unique data set on ticket prices and detailed resort-specific characteristics covering all ski resorts in Austria. (authors' abstract)