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Competition and demographics

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Author Info
Amin, Mohammad

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Keywords: Markets and Market Access; Education for Development (superceded); Economic Theory&Research; Labor Policies; Emerging Markets;

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    Other versions:
  4. 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. [Downloadable!] (restricted)
  5. Monica Giulietti & Catherine Waddams Price & Michael Waterson, 2005. "Consumer Choice and Competition Policy: a Study of UK Energy Markets," Economic Journal, Royal Economic Society, vol. 115(506), pages 949-968, October. [Downloadable!] (restricted)
  6. Canice Prendergast, 2002. "Consumers and Agency Problems," Economic Journal, Royal Economic Society, vol. 112(478), pages C34-C51, March. [Downloadable!] (restricted)
  7. Pierre, Gaelle & Scarpetta, Stefano, 2006. "Employment protection: Do firms' perceptions match with legislation?," Economics Letters, Elsevier, vol. 90(3), pages 328-334, March. [Downloadable!] (restricted)
  8. 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. [Downloadable!] (restricted)
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  9. 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. [Downloadable!] (restricted)
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