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Competition and demographics

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  • Amin, Mohammad

Abstract

Mainstream economics views demographic changes in the structure of households as of little relevance for the behavior of firms or the functioning of markets. The present paper dispels this view by arguing that changes in the number of non-workers could affect the intensity with which consumers search for best prices and therefore the level of competition. The author also analyzes the relationship between income and competition, which some studies suggest is negative. The author argues that the negative relationship is most likely due to the demographic factors discussed.

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Bibliographic Info

Paper provided by The World Bank in its series Policy Research Working Paper Series with number 4514.

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Date of creation: 01 Feb 2008
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Handle: RePEc:wbk:wbrwps:4514

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Keywords: Markets and Market Access; Education for Development (superceded); Economic Theory&Research; Labor Policies; Emerging Markets;

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  1. Rafael Lalive & Armin Schmutzler, 2005. "Exploring the Effects of Competition for Railway Markets," SOI - Working Papers 0511, Socioeconomic Institute - University of Zurich, revised Apr 2007.
  2. Paul S. Calem & Loretta J. Mester, 1995. "Consumer behavior and the stickiness of credit card interest rates," Working Papers 95-10, Federal Reserve Bank of Philadelphia.
  3. Barron, John M. & Taylor, Beck A. & Umbeck, John R., 2004. "Number of sellers, average prices, and price dispersion," International Journal of Industrial Organization, Elsevier, vol. 22(8-9), pages 1041-1066, November.
  4. Monica Giulietti & Catherine Waddams Price & Michael Waterson, 2005. "Consumer Choice and Competition Policy: a Study of UK Energy Markets," Economic Journal, Royal Economic Society, Royal Economic Society, vol. 115(506), pages 949-968, October.
  5. Fisman, Raymond & Svensson, Jakob, 2000. "Are corruption and taxation really harmful to growth? - firm-level evidence," Policy Research Working Paper Series 2485, The World Bank.
  6. S. Baranzoni & P. Bianchi & L. Lambertini, 2000. "Market Structure," Working Papers 368, Dipartimento Scienze Economiche, Universita' di Bologna.
  7. Alan T. Sorensen, 2000. "Equilibrium Price Dispersion in Retail Markets for Prescription Drugs," Journal of Political Economy, University of Chicago Press, University of Chicago Press, vol. 108(4), pages 833-862, August.
  8. Marvel, Howard P, 1976. "The Economics of Information and Retail Gasoline Price Behavior: An Empirical Analysis," Journal of Political Economy, University of Chicago Press, University of Chicago Press, vol. 84(5), pages 1033-60, October.
  9. Pierre, Gaelle & Scarpetta, Stefano, 2006. "Employment protection: Do firms' perceptions match with legislation?," Economics Letters, Elsevier, vol. 90(3), pages 328-334, March.
  10. Waterson, Michael, 2003. "The role of consumers in competition and competition policy," International Journal of Industrial Organization, Elsevier, vol. 21(2), pages 129-150, February.
  11. Canice Prendergast, 2002. "Consumers and Agency Problems," Economic Journal, Royal Economic Society, Royal Economic Society, vol. 112(478), pages C34-C51, March.
  12. Claycombe, Richard J., 2000. "The effects of market structure on prices of clothing and household furnishings," International Journal of Industrial Organization, Elsevier, vol. 18(5), pages 827-841, July.
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