Differences in competitors’ market influence due to market structure: Evidence from Japanese gambling market

This study investigates how differences in the market structure between the Japanese horse racing and Keirin 1Keirin, the gambling racing used in this paper, is different from the Keirin held at the Olympics. In Japan, bicycle races that are the subject of gambling are called Keirin, and is used in this context in this paper. racing markets affects the influence exercised by high-turnover operators (major operators) in both markets on low-turnover operators (minor operators) in those markets 2In this paper, "major operators" means high-turnover operators, and "minor operators" means low-turnover operators. Operator means the race organizer as recognized by gamblers.. In the horse racing market structure, there are few competitors, and the difference in turnover 3Turnover means amount of monies in gambling product sales [[1]Gambling Commission, Definitions of terms, Gambling Commission. (n.d.). https://www.gamblingcommission.gov.uk/about-us/guide/page/definitions-of-terms (accessed April 20, 2023).Google Scholar]. Sales means revenue including non-gambling in this paper. 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.