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Review of Industrial Organization

Product Similarity and Cross-Price Elasticity

  • 08-06-2017
Published in:
Authors
Sreya Kolay
Rajeev K. Tyagi
Published in
Review of Industrial Organization | Issue 1/2018

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Abstract

We use a spatial competition model to show how an increasing similarity between two products can monotonically increase, monotonically decrease, or have a non-monotonic effect on cross-price elasticity. We relate these results to prior research that links cross-price elasticity to product similarity, and the literature on market structure, merger analysis, and price discrimination.

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previous article Settlements and Appeals in the European Commission’s Cartel Cases: An Empirical Assessment
next article Analyzing the Impact of Electricity Market Structure Changes and Mergers: The Importance of Forward Commitments
Title
Product Similarity and Cross-Price Elasticity
Authors
Sreya Kolay
Rajeev K. Tyagi
Publication date
08-06-2017
Publisher
Springer US
Published in
Review of Industrial Organization / Issue 1/2018
Print ISSN: 0889-938X
Electronic ISSN: 1573-7160
DOI
https://doi.org/10.1007/s11151-017-9578-8
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Other articles of this Issue 1/2018

Analyzing the Impact of Electricity Market Structure Changes and Mergers: The Importance of Forward Commitments

A Welfare Analysis of Location Space Constraints with Vertically Separated Sellers

Is “Delitigation” Associated with a Change in Product Safety? The Case of Vaccines

Strategic Choice of Network Externality and Its Impact on Digital Piracy

Settlements and Appeals in the European Commission’s Cartel Cases: An Empirical Assessment

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