This paper investigates the link between fi rms' geographic confi guration and market power in imperfect markets. We consider two related setups. The fi rst illustrates the relevant characteristics of the pricing equilibrium. A main implication is that the equilibrium price vector changes in accordance to the firms' spatial confi guration. The second, where firms operate as downstream retailers affiliated to rival upstream wholesalers, shows that upstream market power is strongly aff ected by an index of geographic concentration which reflects the spatial configuration of retailers. Finally, our analysis provides several insights for market delineation as well as merger evaluation and remedies.

Localized competition, heterogeneous firms and vertical relations

ALDERIGHI M;
2012-01-01

Abstract

This paper investigates the link between fi rms' geographic confi guration and market power in imperfect markets. We consider two related setups. The fi rst illustrates the relevant characteristics of the pricing equilibrium. A main implication is that the equilibrium price vector changes in accordance to the firms' spatial confi guration. The second, where firms operate as downstream retailers affiliated to rival upstream wholesalers, shows that upstream market power is strongly aff ected by an index of geographic concentration which reflects the spatial configuration of retailers. Finally, our analysis provides several insights for market delineation as well as merger evaluation and remedies.
File in questo prodotto:
Non ci sono file associati a questo prodotto.

I documenti in IRIS sono protetti da copyright e tutti i diritti sono riservati, salvo diversa indicazione.

Utilizza questo identificativo per citare o creare un link a questo documento: https://hdl.handle.net/20.500.14087/3955
 Attenzione

Attenzione! I dati visualizzati non sono stati sottoposti a validazione da parte dell'ateneo

Citazioni
  • ???jsp.display-item.citation.pmc??? ND
social impact