Intra-and inter-channel competition in local-service sectors

Abstract: 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, we show how to infer information on these sectors' degree of intra-and inter-channel competition from the observed entry decisions in different local markets. The approach also controls for ...