Philippe Choné

interaction seminar

Philippe Choné

CREST
Spatial nonprice competition: A network approach
Joint with
Lionel Wilner
Venue

VC Salle 205

Centre de la Vieille-Charité - Salle 205

Centre de la Vieille Charité
2 rue de la Charité
13002 Marseille

Date(s)
Tuesday, May 24 2016| 12:30pm to 1:45pm
Contact(s)

Mathieu Faure: mathieu.faure[at]univ-amu.fr
Kenan Huremovic: kenan.huremovic[at]univ-amu.fr

Abstract

We empirically assess the nature and strength of strategic interactions in industries with spatial nonprice competition. Given that the utilities provided by firms to consumers are unobserved to the researcher, our identification strategy relies on longitudinal data and on the occurrence of firm-level shocks. We use the notion of centrality introduced by network theorists, constructing centrality indicators based on the economy’s Leontief matrix. From the evolution of local market shares, we estimate the link between the firms’ responses to the shocks and the centrality indicators. The results in our application strongly suggest that the utilities provided by hospitals to patients are strategic complements.

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