Understanding the relationship between different modes of home care for the elderly and the determinants of mode choice is
fundamental for an efficient care policy in ageing societies. However, empirical research on this issue has revealed that
policy conclusions will depend on both national and methodological factors. Using data for Austria from the Survey of Health,
Ageing and Retirement in Europe, the purpose of the present paper is twofold: First, at least to our knowledge, it is the
first comprehensive assessment of this kind for Austria. Second, it adds to the literature explicitly focusing on the combined
use of informal and formal care in addition to the exclusive use of these services based on an econometric framework accounting
for the simultaneity and interdependence between these modes. Our results provide strong evidence for a task-specific and
complementary relation of formal and informal home care in Austria, with the health status and functional limitations as the
main determinants of home care choice.
The empirical literature on mergers, market power and cooperation in differentiated markets has mainly focused on methods
relying on output and/or panel data. In contrast to this literature we propose an approach to analyse cooperative behaviour
among a group of firms only by making use of information on the spatial structure of a horizontally differentiated market.
Using spatial econometrics techniques we focus on differences in the pricing behaviour between different groups of firms,
i.e., alliance and stand-alone firms. We apply this 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. Interaction in pricing
is higher within than outside alliances. All results are in line with the findings of theoretical models on non-competitive
pricing behaviour in horizontally differentiated markets.