Competition in local-service sectors

摘要

Although economically very important, local-service sectors have received little attention in the extensive literature on competitive interactions. Detailed data gathering in these sectors is hard, not only because of the multitude of local players, but also because key service dimensions are hard to quantify. Using empirical entry models in the tradition of Bresnahan and Reiss [Bresnahan, T.F., and Reiss, P.C. (1990). Entry in monopoly markets. Review of Economic Studies, 57 (192), 531-553, Bresnahan, T.F., and Reiss, P.C. (1991). Entry and competition in concentrated markets. Journal of Political Economy, 99 (5), 977-1009], we infer information on these sectors' degree of competition from the observed entry decisions in different local markets.