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Reaching for the Stars: Spatial Competition and Consumer Reviews
Atlantic Economic Journal Pub Date : 2020-09-01 , DOI: 10.1007/s11293-020-09679-x
Josh Matti

Competition is a key feature of the market process assumed to improve market outcomes. But how strong is the relationship between competition and positive consumer experiences, and how does the relationship vary across space and type of competitor? Phoenix is a suitable setting in which to explore these questions because it is a major metropolitan area with thousands of unique restaurants rated on Yelp. The consumer experience is measured based upon Yelp user-generated reviews through July 2016, with higher ratings reflecting better customer experiences. Competition is defined in different ways depending upon the number of overall, same-price and same-type restaurants nearby. Given differences between chain and independent restaurants, competition is further segmented across these two types of establishments. After controlling for restaurant characteristics, census-tract-level demographics, census-tract fixed effects and sub-industry fixed effects the results suggest that spatial competition is only associated with better customer experiences for same-category independent restaurants within driving distance (1-5 miles). The association is not present for overall and same-price independent restaurant competition nor for chain restaurants. Consistent with the sprawling layout of the Phoenix area, the effect of competition is only for restaurants within driving distance. These findings are relevant for cities designing policies to attract residents by offering high-quality consumer amenities.

中文翻译:

追星:空间竞争和消费者评论

竞争是市场过程的一个关键特征,旨在改善市场结果。但竞争与积极的消费者体验之间的关系有多强,这种关系在不同的空间和竞争对手类型之间有何不同?凤凰城是探索这些问题的合适场所,因为它是一个主要的大都市区,在 Yelp 上有数千家独特的餐厅。消费者体验是根据 Yelp 用户在 2016 年 7 月之前生成的评论来衡量的,较高的评级反映了更好的客户体验。竞争以不同方式定义,具体取决于附近的整体、相同价格和相同类型餐厅的数量。鉴于连锁餐厅和独立餐厅之间的差异,这两种类型的机构之间的竞争进一步细分。在控制餐厅特征、人口普查级人口统计、人口普查固定效应和子行业固定效应后,结果表明空间竞争仅与驾车距离内的同类别独立餐厅更好的客户体验相关 (1-5英里)。该协会不适用于整体和同价独立餐厅竞争,也不适用于连锁餐厅。与凤凰地区的庞大布局相一致,竞争的效果仅针对驾车距离内的餐厅。这些发现与城市制定政策以通过提供高质量的消费设施来吸引居民有关。人口普查区固定效应和子行业固定效应 结果表明,空间竞争仅与驾车距离(1-5 英里)内的同类别独立餐厅更好的客户体验相关。该协会不适用于整体和同价独立餐厅竞争,也不适用于连锁餐厅。与凤凰地区的庞大布局相一致,竞争的效果仅针对驾车距离内的餐厅。这些发现与城市制定政策以通过提供高质量的消费设施来吸引居民有关。人口普查区固定效应和子行业固定效应 结果表明,空间竞争仅与驾车距离(1-5 英里)内的同类别独立餐厅更好的客户体验相关。该协会不适用于整体和同价独立餐厅竞争,也不适用于连锁餐厅。与凤凰地区的庞大布局相一致,竞争的效果仅针对驾车距离内的餐厅。这些发现与城市制定政策以通过提供高质量的消费设施来吸引居民有关。与凤凰地区的庞大布局相一致,竞争的效果仅针对驾车距离内的餐厅。这些发现与城市制定政策以通过提供高质量的消费设施来吸引居民有关。与凤凰地区的庞大布局相一致,竞争的效果仅针对驾车距离内的餐厅。这些发现与城市制定政策以通过提供高质量的消费设施来吸引居民有关。
更新日期:2020-09-01
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