Consumers and Competition
AbstractThis paper shows that even if all consumers face search costs, if these are below a certain level dependent upon the firm numbers and demand elasticity, the Diamond-type equilibrium with all prices at the monopoly level fails to exist.
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Bibliographic InfoPaper provided by University of Warwick, Department of Economics in its series The Warwick Economics Research Paper Series (TWERPS) with number 679.
Length: 13 pages
Date of creation: 2003
Date of revision:
Diamond Paradox ; Search Behaviour ; Oligopoly pricing;
Find related papers by JEL classification:
- D83 - Microeconomics - - Information, Knowledge, and Uncertainty - - - Search, Learning, and Information
- D11 - Microeconomics - - Household Behavior - - - Consumer Economics: Theory
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.:
- Domberger, Simon & Sherr, Avrom, 1989. "The impact of competition on pricing and quality of legal services," International Review of Law and Economics, Elsevier, Elsevier, vol. 9(1), pages 41-56, June.
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- Rees, Ray, 1993. "Collusive Equilibrium in the Great Salt Duopoly," Munich Reprints in Economics, University of Munich, Department of Economics 3413, University of Munich, Department of Economics.
- Anderson, S.P. & Renault, R., 1997.
"Pricing, Product Diversity and Search Costs: A Bertrand-Chamberlin-Diamond Model,"
Papers, Toulouse - GREMAQ
97.481, Toulouse - GREMAQ.
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- Simon P. Anderson & Regis Renault, 1999. "Pricing, product diversity, and search costs: a Bertrand-Chamberlin-Diamond model," Virginia Economics Online Papers 335, University of Virginia, Department of Economics.
- Hehenkamp, Burkhard, 2002. "Sluggish Consumers: An Evolutionary Solution to the Bertrand Paradox," Games and Economic Behavior, Elsevier, Elsevier, vol. 40(1), pages 44-76, July.
- Stahl, Dale O, II, 1989. "Oligopolistic Pricing with Sequential Consumer Search," American Economic Review, American Economic Association, American Economic Association, vol. 79(4), pages 700-712, September.
- Lach, Saul & Moraga-González, José-Luis, 2009.
"Asymmetric Price Effects of Competition,"
CEPR Discussion Papers, C.E.P.R. Discussion Papers
7319, C.E.P.R. Discussion Papers.
- Lach, Saul & Moraga, Jose L., 2009. "Asymmetric price effects of competition," IESE Research Papers, IESE Business School D/797, IESE Business School.
- Saul Lach & Jose Luis Moraga-Gonzalez, 2009. "Asymmetric Price Effects of Competition," Tinbergen Institute Discussion Papers 09-049/2, Tinbergen Institute.
- Giovanni B. Ramello & Donatella Porrini, 2004. "Competition in Banking: Switching Costs and the Limits of Antitrust Enforcement," LIUC Papers in Economics, Cattaneo University (LIUC) 153, Cattaneo University (LIUC).
- Emanuele Giovanetti, 2005. "Diagonal mergers and foreclosure in the internet," Working Papers, University of Rome La Sapienza, Department of Public Economics 80, University of Rome La Sapienza, Department of Public Economics.
- Waterson, Michael, 2003.
"The role of consumers in competition and competition policy,"
International Journal of Industrial Organization, Elsevier,
Elsevier, vol. 21(2), pages 129-150, February.
- Waterson, Michael, 2001. "The role of consumers in competition and competition policy," The Warwick Economics Research Paper Series (TWERPS), University of Warwick, Department of Economics 607, University of Warwick, Department of Economics.
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