“Ineffective” competition: a puzzle?

Ivanov, Andrey V. und Mueller, Florian (Mai 2006): “Ineffective” competition: a puzzle? SFB/TR 15 Discussion Paper No. 117

Abstract

Conventionally, we think of an increase in competition as weakly decreasing prices, increasing the number of consumers served, thus increasing consumer surplus, decreasing firms profits, etc. Here, we demonstrate that, under some tame circumstances, an increase in competition may lead to a price increase in a horizontally differentiated market. We show this relationship for the petrol market in German cities.

• Dokumententyp: Paper
• Fakultät: Sonderforschungsbereiche > Discussion Paper Series of SFB/TR 15 Governance and the Efficiency of Economic Systems ; Sonderforschungsbereiche > Discussion Paper Series of SFB/TR 15 Governance and the Efficiency of Economic Systems > C6 - Kommunikations- und Transporttechnologien, Industrie- und Regionalstruktur
• Themengebiete: 300 Sozialwissenschaften > 330 Wirtschaft
• Sprache: Englisch