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Do Firms' Product Lines Include Too Many Varieties, and Do Shops Open Too Many Days?

Author

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  • Klemperer, Paul
  • Padilla, Atilano Jorge

Abstract

This paper attempts to give a meaning to the empty concept of subsidiarity. It examines various kinds of government activity with respect to the optimal layer of government in Europe at which these activities should be performed. The paper criticizes Europe's industrial policies and its protectionism, and it points to European-wide public-goods and redistribution problems which make centralized government actions a matter of necessity. The paper's main focus is on the free movement of goods, capital, labour and services. It is argued that these movements will induce a process of fierce fiscal competition in which an inverse redistribution from the poor to the rich will emerge, where consumer protection becomes eroded and environmental standards are overdrawn.

Suggested Citation

  • Klemperer, Paul & Padilla, Atilano Jorge, 1993. "Do Firms' Product Lines Include Too Many Varieties, and Do Shops Open Too Many Days?," CEPR Discussion Papers 835, C.E.P.R. Discussion Papers.
  • Handle: RePEc:cpr:ceprdp:835
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    Cited by:

    1. Degryse, Hans, 1999. "The total cost of trading Belgian shares: Brussels versus London," Journal of Banking & Finance, Elsevier, vol. 23(9), pages 1331-1355, September.

    More about this item

    Keywords

    Competition Policy; Excess Variety; Foreclosure; Merger Policy; Product Lines; Shopping Costs; Sunday Trading; Switching Costs;
    All these keywords.

    JEL classification:

    • D43 - Microeconomics - - Market Structure, Pricing, and Design - - - Oligopoly and Other Forms of Market Imperfection
    • L13 - Industrial Organization - - Market Structure, Firm Strategy, and Market Performance - - - Oligopoly and Other Imperfect Markets
    • L41 - Industrial Organization - - Antitrust Issues and Policies - - - Monopolization; Horizontal Anticompetitive Practices

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