Price and non-price competition with endogenous market structure
AbstractThis paper examines the effect of the intensity of short-run price competition and other exogenous variables that affect gross profit margins-such as the degree of product differentiation and the consumers' responsiveness to quality-on market structure and on advertising and R&D expenditure. A key result is that more intense short-run competition can lead to lower concentration in industries with high advertising or R&D intensity, unlike exogenous-sunk-cost industries. Also, price competition has a negative effect on advertising or R&D expenditure. A case study is also presented, which is consistent with the theoretical results of the paper. Copyright (c) 2000 Massachusetts Institute of Technology.
Download InfoTo our knowledge, this item is not available for download. To find whether it is available, there are three options:
1. Check below under "Related research" whether another version of this item is available online.
2. Check on the provider's web page whether it is in fact available.
3. Perform a search for a similarly titled item that would be available.
Bibliographic InfoPaper provided by University of Essex, Department of Economics in its series Economics Discussion Papers with number 501.
Date of creation: 1999
Date of revision:
Postal: Discussion Papers Administrator, Department of Economics, University of Essex, Wivenhoe Park, Colchester CO4 3SQ, U.K.
Other versions of this item:
- George Symeonidis, 2000. "Price and Nonprice Competition with Endogenous Market Structure," Journal of Economics & Management Strategy, Wiley Blackwell, vol. 9(1), pages 53-83, 03.
You can help add them by filling out this form.
CitEc Project, subscribe to its RSS feed for this item.
- Stefan Buehler & Christian Kaiser & Franz Jaeger, 2004.
"Competition Policy and Exit Rates: Evidence from Switzerland,"
SOI - Working Papers
0405, Socioeconomic Institute - University of Zurich, revised Apr 2005.
- Buehler Stefan & Kaiser Christian & Jaeger Franz, 2005. "Competition Policy and Exit Rates: Evidence from Switzerland," The B.E. Journal of Economic Analysis & Policy, De Gruyter, vol. 4(1), pages 1-30, November.
- Symeonidis, George, 2000.
"Price Competition and Market Structure: The Impact of Cartel Policy on Concentration in the UK,"
Journal of Industrial Economics,
Wiley Blackwell, vol. 48(1), pages 1-26, March.
- Symeonidis, George, 1999. "Price Competition and Market Structure: The Impact of Cartel Policy on Concentration in the UK," CEPR Discussion Papers 2308, C.E.P.R. Discussion Papers.
- George Symeonidis, 2009.
"Downstream merger and welfare in a bilateral oligopoly,"
Economics Discussion Papers
671, University of Essex, Department of Economics.
- Symeonidis, George, 2010. "Downstream merger and welfare in a bilateral oligopoly," International Journal of Industrial Organization, Elsevier, vol. 28(3), pages 230-243, May.
- Vives, Xavier, 2004.
"Innovation and Competitive Pressure,"
CEPR Discussion Papers
4369, C.E.P.R. Discussion Papers.
- Vives, Xavier, 2006. "Innovation and competitive pressure," IESE Research Papers D/634, IESE Business School.
- Vives, Xavier, 2005. "Innovation and Competitive Pressure," Department of Economics, Working Paper Series qt1s1059vr, Department of Economics, Institute for Business and Economic Research, UC Berkeley.
- Toshihiro Matsumura & Noriaki Matsushima & Susumu Cato, 2009. "Relative Performance and R&D Competition," ISER Discussion Paper 0752, Institute of Social and Economic Research, Osaka University.
- Matsumura, Toshihiro & Matsushima, Noriaki & Cato, Susumu, 2013. "Competitiveness and R&D competition revisited," Economic Modelling, Elsevier, vol. 31(C), pages 541-547.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Essex Economics Web Manager).
If references are entirely missing, you can add them using this form.