Competition and price formation in the professions (in Dutch)
This paper analyses competition in the professions, paying attention to the consequences for the price level and price differentiation in particular. This is relevant not only for the evaluation of competition policy, but also for monetary policy. If enhancing competition is successful, it may contribute to low inflation and to increased price flexibility, the latter being important in absorbing economic shocks. The paper discusses the theory on the professions, followed by empirical analysis for two specific sectors: real estate brokers and notaries in the Netherlands. The choice of sectors is motivated by data availability. The data suggest that - despite recent liberalisation measures in both sectors - competition is still insufficient.
|Date of creation:||Mar 2003|
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