Arbeitspapier

Entry regulations, product differentiation and determinants of market structure

We use a dynamic oligopoly model of entry and exit to evaluate how entry regulations affect profitability and market structure in retail. The model incorporates demand and store-level heterogeneity. Based on unique data for all retail food stores in Sweden, we find that the average entry costs for small and large stores are 10 and 18 percent lower, respectively, in markets with liberal compared with restrictive regulations. Counterfactual simulations show that lower entry costs in restrictive markets result in higher entry rates and allow us to quantify the consequences of regulations in light of trade-offs between small and large stores.

Sprache
Englisch

Erschienen in
Series: IFN Working Paper ; No. 984

Klassifikation
Wirtschaft
Production, Pricing, and Market Structure; Size Distribution of Firms
Oligopoly and Other Imperfect Markets
Retail and Wholesale Trade; e-Commerce
Thema
Imperfect competition
product differentiation
retail markets
entry
exit
sunk costs

Ereignis
Geistige Schöpfung
(wer)
Maican, Florin
Orth, Matilda
Ereignis
Veröffentlichung
(wer)
Research Institute of Industrial Economics (IFN)
(wo)
Stockholm
(wann)
2013

Handle
Letzte Aktualisierung
10.03.2025, 11:42 MEZ

Datenpartner

Dieses Objekt wird bereitgestellt von:
ZBW - Deutsche Zentralbibliothek für Wirtschaftswissenschaften - Leibniz-Informationszentrum Wirtschaft. Bei Fragen zum Objekt wenden Sie sich bitte an den Datenpartner.

Objekttyp

  • Arbeitspapier

Beteiligte

  • Maican, Florin
  • Orth, Matilda
  • Research Institute of Industrial Economics (IFN)

Entstanden

  • 2013

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