Working Paper

Spatial Competition with Changing Market Institutions

Mar 4, 2010 | Harrison Fell, Alan C. Haynie


The nature of competition across space can be fundamentally altered by changes in market institutions. We propose a new framework that allows for the inclusion of market-altering policy changes in the spatial analysis of competitive behavior. This paper fills a gap in the literature between work that focuses on spatial price responsiveness of agents to one another and the literature that explores how policy changes in market regulations affect the competitive behavior of agents. Specifically, we account for how a change in fisheries management (the creation of catch shares) affects the spatial responsiveness of fish processors across a 21-year time period. We also introduce a method that allows for the incorporation of breaks of explanatory variables in spatial panel data sets.