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Deregulating Down to Six-Feet-Under? An Econometric Analysis of a Local Funeral Market

Author

Listed:
  • Thierry Blayac

    (LAMETA - Laboratoire Montpelliérain d'Économie Théorique et Appliquée - UM1 - Université Montpellier 1 - UPVM - Université Paul-Valéry - Montpellier 3 - INRA - Institut National de la Recherche Agronomique - Montpellier SupAgro - Centre international d'études supérieures en sciences agronomiques - UM - Université de Montpellier - CNRS - Centre National de la Recherche Scientifique - Montpellier SupAgro - Institut national d’études supérieures agronomiques de Montpellier)

  • Patrice Bougette

    (GREDEG - Groupe de Recherche en Droit, Economie et Gestion - UNS - Université Nice Sophia Antipolis (1965 - 2019) - CNRS - Centre National de la Recherche Scientifique - UniCA - Université Côte d'Azur)

  • Christian Montet

    (LAMETA - Laboratoire Montpelliérain d'Économie Théorique et Appliquée - UM1 - Université Montpellier 1 - UPVM - Université Paul-Valéry - Montpellier 3 - INRA - Institut National de la Recherche Agronomique - Montpellier SupAgro - Centre international d'études supérieures en sciences agronomiques - UM - Université de Montpellier - CNRS - Centre National de la Recherche Scientifique - Montpellier SupAgro - Institut national d’études supérieures agronomiques de Montpellier)

Abstract

This paper provides an assessment of the competitive effects of deregulation on a local market that exhibits typical competitive conditions in the French funeral industry. Using a nested logit model, we first show that demand for funeral services is characterized by relatively high price elasticities, which is contrary to widely shared beliefs. Various simulations of price increases by the leader, using a kind of SSNIP test, show that its market power is lower than expected. Our study of the competitive role of `funeral rooms' and of new entries in this type of service suggests that the remaining issues concerning possible improvements of the competitive process are linked with current regulations, especially those surrounding the management of funeral rooms.

Suggested Citation

  • Thierry Blayac & Patrice Bougette & Christian Montet, 2009. "Deregulating Down to Six-Feet-Under? An Econometric Analysis of a Local Funeral Market," Post-Print halshs-00466337, HAL.
    • Handle: RePEc:hal:journl:halshs-00466337
    as

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