Spatial Differentiation and Entry: Evidence from Retail Gasoline Market in Taiwan
2018/11/09
研討會日期 : 2018-11-09
時間 : 14:30
主講人 : Professor Jian-Da Zhu (朱建達)
主持人 : Professor Le-Yu Chen
地點 : Conference Room B110
演講者簡介 : Professor Zhu received his Ph.D. in Economics from Texas A&M University. He is currently an Assistant Professor at National Taiwan University. His research fields are Industrial Organization, Applied Microeconomics, Econometrics.
演講摘要 : This study uses the data for retail gasoline market in Taiwan to investigate how new entrants decide their locations to increase or decrease spatial differentiation against incumbents. The result shows that gasoline stations with the new brand attempt to locate close to those with the incumbent brand, which sup-ports the max-min theory that firms choose to maximize differentiation in one dimension and to minimize differentiation in the other dimension. In addition, firms with multiple stations (chain stores) are more likely to locate close to those independent firms with a single station in the market. The possible explanation is that the upstream refinery sells gasoline to those chain stores by lower prices, compared to those prices for independent stations.
