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Differences in competitors' market influence due to market structure: Evidence from Japanese gambling market.
Heliyon 2024 May 16
This study investigates how differences in the market structure between the Japanese horse racing and Keirin1 racing markets affects the influence exercised by high-turnover operators (major operators) in both markets on low-turnover operators (minor operators) in those markets.2 In the horse racing market structure, there are few competitors, and the difference in turnover3 between major and minor operators is large. In contrast, in the Keirin racing market structure, there are many competitors, and the difference in turnover between major and minor operators is small. Panel analysis results show that in horse racing, operators with low turnover are significantly affected by those with high turnover, while in Keirin racing, operators with low turnover are less affected by competitors with high turnover. The results not only indicate that firms are affected differently by competitors due to the market structure but also suggest that this has an impact on market segmentation policies and firms' marketing efforts.
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