Please use this identifier to cite or link to this item: https://hdl.handle.net/10419/246287 
Year of Publication: 
2019
Series/Report no.: 
Working Paper No. 1917
Publisher: 
Johannes Kepler University of Linz, Department of Economics, Linz
Abstract: 
This article presents a novel method of market delineation, which generates virtually isolated residential clusters using data on the spatial distribution of population. The performance of this approach is evaluated by contrasting it with traditional delineation techniques based on municipal boundaries. The estimation of simple entry models for five industries shows that markets defined using micro-level residence information perform better in terms of reducing cross-border spatial spillovers and predicting the equilibrium number of firms on the market more accurately. Additionally, the estimated entry threshold ratios using this method successfully reflect our expectations based on ex-ante knowledge about the investigated industries.
Subjects: 
market definition
entry models
spatial competition
JEL: 
L13
L11
R32
Document Type: 
Working Paper

Files in This Item:
File
Size
1.02 MB





Items in EconStor are protected by copyright, with all rights reserved, unless otherwise indicated.