{"id":119654,"date":"2024-01-22T22:39:34","date_gmt":"2024-01-22T21:39:34","guid":{"rendered":"https:\/\/www.wifo.ac.at\/publication\/119654\/"},"modified":"2024-11-07T05:06:45","modified_gmt":"2024-11-07T04:06:45","slug":"detecting-collusion-in-spatially-differentiated-markets-2","status":"publish","type":"publication","link":"https:\/\/www.wifo.ac.at\/en\/publication\/119654\/","title":{"rendered":"Detecting Collusion in Spatially Differentiated Markets"},"content":{"rendered":"","protected":false},"featured_media":0,"template":"","class_list":["post-119654","publication","type-publication","status-publish","hentry"],"acf":{"subtitle":"","text":"The empirical literature on mergers, market power and collusion in differentiated markets has mainly focused on methods relying on output and\/or panel data. In contrast to this literature we suggest a novel approach that allows for the detection of collusive behaviour among a group of firms making use of information on the spatial structure of horizontally differentiated products. By estimating best response functions using a spatial econometrics approach, we focus on differences in the strategic interaction in pricing between different groups of firms as well as on differences in price levels. We apply our method to the market for ski lift tickets using a unique data set on ticket prices and detailed resort-specific characteristics covering all ski resorts in Austria. We show that prices of ski resorts forming alliances are higher and increase with the size and towards the spatial center of an alliance. Strategic interaction in pricing is higher within than outside alliances. All results are in line with the findings of theoretical models on collusion in horizontally differentiated markets.","onlinedate":"2014-10-17 12:00:00","lang":"English","publication_series":"","publication_date":"20141001","publication_date_year":"","publication_date_full":false,"publication_num_pages":"50","keywords":"[]","jelcodes":"[]","related_publications":"[]","pdf":354707,"zip":null,"link":"","monthly_report":true,"monthly_report_main":false,"monthly_report_volume":"","monthly_report_pages":"","monthly_report_pages_sort":"0","issue":"479","journal":"WIFO Working Papers","publisher":"","invisible":false,"external":false,"embargo_date":"2014-10-17 12:00:00","types":[44410],"research_groups":[3481],"collaboration":"","persons":[3724,3488],"persons_data":"[{\"personId\":3724,\"personName\":\"Matthias Firgo\",\"organisationNames\":[]},{\"personId\":3488,\"personName\":\"Agnes K\u00fcgler\",\"organisationNames\":[]}]","clients":[],"subclients":[],"partners":[],"topics":[],"host_publication_title":"","host_publication_subtitle":"","place_of_publication":"","host_publication_editors":"[]","type_description":"","output_media":"","chapter":"","article_number":"","citations":"{\"apa\":\"<div class=\\\"rendering rendering_researchoutput  rendering_researchoutput_apa rendering_contributiontoperiodical rendering_apa rendering_contributiontoperiodical_apa\\\"><span>Firgo, M.<\\\/span><span>, &amp; K\u00fcgler, A.<\\\/span> (2014). <span>Detecting Collusion in Spatially Differentiated Markets<\\\/span>. <span><em>WIFO Working Papers<\\\/em><\\\/span>, (479). <a onclick=\\\"window.open(this.href, '_blank','noopener,noreferrer'); return false;\\\" href=\\\"https:\\\/\\\/www.wifo.ac.at\\\/wwa\\\/pubid\\\/47491\\\" class=\\\"link\\\"><span>https:\\\/\\\/www.wifo.ac.at\\\/wwa\\\/pubid\\\/47491<\\\/span><\\\/a><\\\/div>\",\"vancouver\":\"<div class=\\\"rendering rendering_researchoutput  rendering_researchoutput_vancouver rendering_contributiontoperiodical rendering_vancouver rendering_contributiontoperiodical_vancouver\\\"><span>Firgo M<\\\/span><span>, K\u00fcgler A<\\\/span>. <span class=\\\"title\\\"><span>Detecting Collusion in Spatially Differentiated Markets<\\\/span><\\\/span>. <span>WIFO Working Papers<\\\/span>. 2014 Oct;(479).<\\\/div>\",\"bibtex\":\"<div class=\\\"rendering rendering_researchoutput  rendering_researchoutput_bibtex rendering_contributiontoperiodical rendering_bibtex rendering_contributiontoperiodical_bibtex\\\"><div>@misc{6edc76262f404eabb1ae274f790fdbbe,<\\\/div><div>  title    = \\\"Detecting Collusion in Spatially Differentiated Markets\\\",<\\\/div><div>  abstract = \\\"The empirical literature on mergers, market power and collusion in differentiated markets has mainly focused on methods relying on output and\\\/or panel data. In contrast to this literature we suggest a novel approach that allows for the detection of collusive behaviour among a group of firms making use of information on the spatial structure of horizontally differentiated products. By estimating best response functions using a spatial econometrics approach, we focus on differences in the strategic interaction in pricing between different groups of firms as well as on differences in price levels. We apply our method to the market for ski lift tickets using a unique data set on ticket prices and detailed resort-specific characteristics covering all ski resorts in Austria. We show that prices of ski resorts forming alliances are higher and increase with the size and towards the spatial center of an alliance. Strategic interaction in pricing is higher within than outside alliances. All results are in line with the findings of theoretical models on collusion in horizontally differentiated markets.\\\",<\\\/div><div>  keywords = \\\"tacit collusion, strategic alliances, spatial differentiation, ski lift ticket prices\\\",<\\\/div><div>  author   = \\\"Matthias Firgo and Agnes K{\\\\\\\"u}gler\\\",<\\\/div><div>  note     = \\\"Detecting Collusion in Spatially Differentiated Markets\\\",<\\\/div><div>  year     = \\\"2014\\\",<\\\/div><div>  month    = oct,<\\\/div><div>  language = \\\"English\\\",<\\\/div><div>  journal  = \\\"WIFO Working Papers\\\",<\\\/div><p>}<\\\/p><\\\/div>\",\"ris\":\"<div class=\\\"rendering rendering_researchoutput  rendering_researchoutput_ris rendering_contributiontoperiodical rendering_ris rendering_contributiontoperiodical_ris\\\"><p>TY  - GEN<\\\/p><p>T1  - Detecting Collusion in Spatially Differentiated Markets<\\\/p><p>AU  - Firgo, Matthias<\\\/p><p>AU  - K\u00fcgler, Agnes<\\\/p><p>N1  - Detecting Collusion in Spatially Differentiated Markets<\\\/p><p>PY  - 2014\\\/10<\\\/p><p>Y1  - 2014\\\/10<\\\/p><p>N2  - The empirical literature on mergers, market power and collusion in differentiated markets has mainly focused on methods relying on output and\\\/or panel data. In contrast to this literature we suggest a novel approach that allows for the detection of collusive behaviour among a group of firms making use of information on the spatial structure of horizontally differentiated products. By estimating best response functions using a spatial econometrics approach, we focus on differences in the strategic interaction in pricing between different groups of firms as well as on differences in price levels. We apply our method to the market for ski lift tickets using a unique data set on ticket prices and detailed resort-specific characteristics covering all ski resorts in Austria. We show that prices of ski resorts forming alliances are higher and increase with the size and towards the spatial center of an alliance. Strategic interaction in pricing is higher within than outside alliances. All results are in line with the findings of theoretical models on collusion in horizontally differentiated markets.<\\\/p><p>AB  - The empirical literature on mergers, market power and collusion in differentiated markets has mainly focused on methods relying on output and\\\/or panel data. In contrast to this literature we suggest a novel approach that allows for the detection of collusive behaviour among a group of firms making use of information on the spatial structure of horizontally differentiated products. By estimating best response functions using a spatial econometrics approach, we focus on differences in the strategic interaction in pricing between different groups of firms as well as on differences in price levels. We apply our method to the market for ski lift tickets using a unique data set on ticket prices and detailed resort-specific characteristics covering all ski resorts in Austria. We show that prices of ski resorts forming alliances are higher and increase with the size and towards the spatial center of an alliance. Strategic interaction in pricing is higher within than outside alliances. All results are in line with the findings of theoretical models on collusion in horizontally differentiated markets.<\\\/p><p>KW  - tacit collusion<\\\/p><p>KW  -  strategic alliances<\\\/p><p>KW  -  spatial differentiation<\\\/p><p>KW  -  ski lift ticket prices<\\\/p><p>M3  - WIFO series<\\\/p><p>JO  - WIFO Working Papers<\\\/p><p>JF  - WIFO Working Papers<\\\/p><p>ER  - <\\\/p><\\\/div>\"}","scientific_assistance":"[]","scientific_review":"[]","version":"","release_date":null,"expiration_date":null,"surveyor":"","research_assistance":"","edv":"","additional_info_de":"","additional_info_en":""},"yoast_head":"<!-- This site is optimized with the Yoast SEO Premium plugin v28.0 (Yoast SEO v28.0) - https:\/\/yoast.com\/product\/yoast-seo-premium-wordpress\/ -->\n<title>Detecting Collusion in Spatially Differentiated Markets - WIFO<\/title>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/www.wifo.ac.at\/en\/publication\/119654\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Detecting Collusion in Spatially Differentiated Markets\" \/>\n<meta property=\"og:url\" content=\"https:\/\/www.wifo.ac.at\/en\/publication\/119654\/\" \/>\n<meta property=\"og:site_name\" content=\"WIFO\" \/>\n<meta property=\"article:publisher\" content=\"https:\/\/www.facebook.com\/WIFOat\/\" \/>\n<meta property=\"article:modified_time\" content=\"2024-11-07T04:06:45+00:00\" \/>\n<meta property=\"og:image\" content=\"https:\/\/www.wifo.ac.at\/wp-content\/uploads\/2024\/05\/WIFO-Gebaeude-FotoAlexanderMueller-www.alexandermueller.at-IMG_6326-Bearbeitet-1.jpg\" \/>\n\t<meta property=\"og:image:width\" content=\"1920\" \/>\n\t<meta property=\"og:image:height\" content=\"1280\" \/>\n\t<meta property=\"og:image:type\" content=\"image\/jpeg\" \/>\n<meta name=\"twitter:card\" content=\"summary_large_image\" \/>\n<meta name=\"twitter:site\" content=\"@WIFOat\" \/>\n<script type=\"application\/ld+json\" class=\"yoast-schema-graph\">{\"@context\":\"https:\\\/\\\/schema.org\",\"@graph\":[{\"@type\":\"WebPage\",\"@id\":\"https:\\\/\\\/www.wifo.ac.at\\\/en\\\/publication\\\/119654\\\/\",\"url\":\"https:\\\/\\\/www.wifo.ac.at\\\/en\\\/publication\\\/119654\\\/\",\"name\":\"Detecting Collusion in Spatially Differentiated Markets - 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