Seminar Series in Management Science and Quantitative Economics

Javier Elizalde-Blasco
Universidad de Navarra

Competition in Multiple Characteristics: An Empirical Test of Location

Monday 14th of March, 2011, from 1230 to 1400
Colegio Universitario de Estudios Financieros
Serrano Anguita 8, Madrid, 28004
Seminars Theatre (Room 12)

With products differentiated in multiple dimensions, the location equilibrium for a duopolistic market exhibits maximum differentiation in one dimension and minimum differentiation in all the other dimensions. This paper analyses whether this equilibrium arises using real data for the Spanish movie theatre exhibition market where the firms (cinemas) are differentiated along two dimensions (their geographical location and the set of movies exhibited). Data not only shows a trade-off such that closer theatres tend to choose a higher proportion of different movies but also there is a tendency towards either maxmin or min-max product differentiation.

Javier Elizalde, is PhD in Applied Economics from Universidad de Navarra and MPhil. In Economics from University College, London. He is currently Assistant Professor at the School of Economics and Business of the Universidad de Navarra. His main research area is Applied Industrial Organization.

To confirm your attendance and for any questions related to the seminar,
please contact Prof. Dídac Ruiz-Hernández (d.ruiz@cunef.du).