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作者

Nathan Schiff;Jacob Cosman;Tianran Dai

来源

来源 JOURNAL OF URBAN ECONOMICS,Vol.134,P.

语言

英文

关键字

Spatial competition;Monopolistic competition;Product differentiation;Location choice;Matching;Text as data;D22;D43;L13;R32

作者单位

School of Economics, Shanghai University of Finance and Economics, China;Zillow, United States;School of Economics, Shanghai University of Finance and Economics, China;Zillow, United States

摘要

We examine the response to entry in a large market with differentiated products using a novel longitudinal dataset of over 550,000 New York City restaurant menus from 68 consecutive weeks. We compare “treated” restaurants facing a nearby entrant to “control” restaurants with no new competition, matching restaurants using location characteristics and a pairwise distance measure based on menu text. Restaurants frequently adjust prices and product offerings but we find no evidence that they respond differentially to new competition. However, restaurants in locations with an entrant count in the top decile—areas with many new competitors—are 22% more likely to exit after a year than restaurants in the lowest entry decile.