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Why do prices in Spain's regions fail to converge? The prime suspects for this puzzling result are differences in regional barriers to entry in retail distribution. This paper develops a Cournot-Nash model of imperfect competition to illustrate the effect of barriers on prices. A unique data set-derived from an extensive analysis of competition policies in Spain- provides evidence that barriers to entry increase regional prices. The evidence also suggests that, consistent with the model's predictions, barriers to entry raise prices up to a point, and thus indicate that barriers have a threshold effect on prices.
Barriers to entry (Industrial organization) -- Spain. --- Competition -- Spain. --- Electronic books. -- local. --- Prices -- Spain -- Regional disparities. --- Retail trade -- Spain. --- Management --- Business & Economics --- Industrial Management --- Barriers to entry (Industrial organization) --- Competition --- Prices --- Retail trade --- Regional disparities. --- Retail industry --- Retailing --- Commercial products --- Commodity prices --- Justum pretium --- Price theory --- Competition (Economics) --- Competitiveness (Economics) --- Economic competition --- Entry, Barriers to (Industrial organization) --- Economic aspects --- Commerce --- Marketing --- Shopping centers --- Wholesale trade --- Consumption (Economics) --- Cost --- Costs, Industrial --- Money --- Cost and standard of living --- Supply and demand --- Value --- Wages --- Willingness to pay --- Conglomerate corporations --- Covenants not to compete --- Industrial concentration --- Monopolies --- Open price system --- Trusts, Industrial --- Industrial organization (Economic theory) --- Restraint of trade --- Trade regulation --- Diversification in industry --- Econometrics --- Finance: General --- Inflation --- Macroeconomics --- 'Panel Data Models --- Spatio-temporal Models' --- Market Structure and Pricing: Oligopoly and Other Forms of Market Imperfection --- Price Level --- Deflation --- General Financial Markets: General (includes Measurement and Data) --- Truncated and Censored Models --- Switching Regression Models --- Threshold Regression Models --- Finance --- Econometrics & economic statistics --- Threshold analysis --- Consumer price indexes --- Financial markets --- Econometric analysis --- Price indexes --- Spain
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