The Assessment of Substitution Through Event Studies-An Application to Supply-Side Substitution in Berlin's Rental Market*

Publikation: Beiträge in ZeitschriftenZeitschriftenaufsätzeForschungbegutachtet

Authors

  • Tomaso Duso
  • Claus Michelsen
  • Maximilian Schaefer
  • Kevin D. Tran
• To assess supply side substitution, one needs to evaluate to what extent a firm that is not yet present in the market but has capabilities to repurpose its production capacity constitutes a competitive constraint to firms operating in the focal
market.
• In practice, the empirical assessment is often difficult because any effects observed upon entry of repurposed capacity are not necessarily caused by said entry alone, but potentially also by the specific market conditions in the focal market (so called
self-selection).
• Policy interventions that affect entry decisions can alleviate such measurement concerns, as we show by assessing how regulations that limit the diffusion of Airbnb in Berlin affect the long-term rentalmarket by repurposing short-term rentals.
• Supply side substitution between professional Airbnb hosts and the long-term rental market exists, but the stock of Airbnb apartments is not large enough to constitute a true competitive constraint.
OriginalspracheEnglisch
ZeitschriftJournal of European Competition Law and Practice
Jahrgang13
Ausgabenummer7
Seiten (von - bis)509-515
Anzahl der Seiten7
ISSN2041-7764
DOIs
PublikationsstatusErschienen - 01.10.2022

DOI