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Econometric Diagnosis of Competitive Localisation: An Application to the UK National Daily Newspaper Market

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  • Claire Morris

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    Abstract

    This paper applies an econometric test of competitive localisation derived by Schmalensee (1985) to the UK national daily newspaper market. The test uses data on market shares, advertising and prices to distinguish between localised and generalised competition. The first stage of the test establishes whether generalised (symmetric) competition can be identified. If this hypothesis is rejected, further testing is required to provide evidence of competitive localisation. As in Schmalensee's own application, the results obtained decisively reject the symmetric model but are unable to confirm localisation.

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    Bibliographic Info

    Paper provided by Department of Economics, University of Kent in its series Studies in Economics with number 9712.

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    Date of creation: Dec 1997
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    Handle: RePEc:ukc:ukcedp:9712

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    Postal: Department of Economics, University of Kent at Canterbury, Canterbury, Kent, CT2 7NP
    Phone: +44 (0)1227 764000
    Fax: +44 (0)1227 827850
    Web page: http://www.ukc.ac.uk/economics/

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    Keywords: Product differentiation; competitive localisation; newspapers;

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