When cost improvements harm consumers
AbstractThis paper demonstrates that improving cost efficiency in a vertical structure might sometimes be detrimental to consumers. This is in stark contrast with the standard microeconomics result which suggests that the surplus generated by any efficiency gain in production is shared between firms and final consumers, depending on the degree of market power. These new results may apply in contexts such as the diffusion of knowledge and techniques and governmental intervention through income support programs. Copyright Springer Science+Business Media, LLC 2007
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Bibliographic InfoArticle provided by Springer in its journal Review of Industrial Organization.
Volume (Year): 30 (2007)
Issue (Month): 1 (February)
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Web page: http://www.springerlink.com/link.asp?id=100336
Oligopsonists; Retail; Vertical structure; Cost pass-through; L11; L12;
Other versions of this item:
- L11 - Industrial Organization - - Market Structure, Firm Strategy, and Market Performance - - - Production, Pricing, and Market Structure; Size Distribution of Firms
- L12 - Industrial Organization - - Market Structure, Firm Strategy, and Market Performance - - - Monopoly; Monopolization Strategies
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
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