Philippe Choné

Thematic seminars
Economic theory seminar

Philippe Choné

Spatial nonprice competition: A network approach
Joint with
Lionel Wilner

VC Salle 205

Centre de la Vieille-Charité - Salle 205

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

Tuesday, May 24 2016| 12:30pm to 1:45pm

Mathieu Faure: mathieu.faure[at]
Kenan Huremovic: kenan.huremovic[at]


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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