Raising rivals’ fixed costs

This article demonstrates that raising fixed costs can serve as a credible mechanism for a well placed firm to exclude its rivals. We identify a number of credible avenues, such as increased regulation, vexatious litigation and increased prices for essential inputs, through which such a firm can raise fixed costs. We show that for a wide range of oligopoly models this may be a profitable strategy, even if the firm’s own fixed costs are affected as much (or even more) than its rivals and even if it is less efficient. The resulting reduction in the number of firms in the market is detrimental to consumer welfare and hence worthy of scrutiny by competition and regulatory authorities.

Pub crawling at scale:tapping untappd to explore social drinking

There has been a recent surge of research looking at the reporting of food consumption on social media. The topic of alcohol consumption, however, remains poorly investigated. Social media has the potential to shed light on a topic that, traditionally, is difficult to collect fine-grained information on. One social app stands out in this regard: Untappd is an app that allows users to ‘check-in’ their consumption of beers. It operates in a similar fashion to other location-based applications, but is specifically tailored to the collection of information on beer consumption. In this paper, we explore beer consumption through the lens of social media. We crawled Untappd in real time over a period of 112 days, across 40 cities in the United States and Europe. Using this data, we shed light on the drinking habits of over 369k users. We focus on per-user and per-city characterisation, highlighting key behavioural trends.