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An Empirical Anslysis of Spatial Competition

Author

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  • Goettler, R.
  • Shachar, R.

Abstract

This paper presents an empirical study of spatial competition and a methodological approach to estimating product characteristics and consumer preferences in industries with products whose characteristics are unobservable or difficult to measure.We demonstrate the effective use of panel data on consumers choices to identify (a) the attribute space over which firms compete, (b) product locations on these attributes and (c) the distribution of consumer preferences.The econometric method is applied to analyze competition for viewers in the television industry. We find four latent attributes along which the shows are continuously dispersed.

Suggested Citation

  • Goettler, R. & Shachar, R., 2000. "An Empirical Anslysis of Spatial Competition," Papers 00-12, Tel Aviv.
  • Handle: RePEc:fth:teavfo:00-12
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    More about this item

    Keywords

    COMPETITION ; PRODUCTION ; SPACE;

    JEL classification:

    • C51 - Mathematical and Quantitative Methods - - Econometric Modeling - - - Model Construction and Estimation
    • D12 - Microeconomics - - Household Behavior - - - Consumer Economics: Empirical Analysis
    • D40 - Microeconomics - - Market Structure, Pricing, and Design - - - General
    • L10 - Industrial Organization - - Market Structure, Firm Strategy, and Market Performance - - - General
    • L82 - Industrial Organization - - Industry Studies: Services - - - Entertainment; Media

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