Please use this identifier to cite or link to this item: http://hdl.handle.net/10419/18927
Authors: 
Goetz, Georg
Gugler, Klaus
Year of Publication: 
2004
Series/Report no.: 
CESifo Working Paper 1289
Abstract: 
We show that for a spatially differentiated economy reduced product variety is the likely outcome of mergers except in cases where exit costs in relation to (outlet-specific) fixed costs are high. Our empirical analysis of the Austrian retail gasoline market confirms that increases in concentration reduce product variety. Ignoring this product variety effect is likely to lead to an underestimate of market power in structural merger analysis.
Subjects: 
spatial product differentiation
retail gasoline
mergers
concentration
JEL: 
L11
L90
L13
Document Type: 
Working Paper

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