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Competition versus efficiency

Author

Listed:
  • Soumyananda Dinda
  • Arijit Mukherjee

Abstract

It is usually believed that higher competition, implying more active firms, benefits consumers and encourages the antitrust authorities to foster competition. We show that this view can be misleading, and higher competition may actually make the consumers worse-off. We suggest that the antitrust authorities should be interested in reducing inefficiency instead of increasing competition through more firms.

Suggested Citation

  • Soumyananda Dinda & Arijit Mukherjee, 2010. "Competition versus efficiency," Discussion Papers 10/11, University of Nottingham, School of Economics.
    • Handle: RePEc:not:notecp:10/11
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    File URL: https://www.nottingham.ac.uk/economics/documents/discussion-papers/10-11.pdf
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    Cited by:

    1. Soumyananda Dinda & Arijit Mukherjee, 2014. "A Note on the Adverse Effect of Competition on Consumers," Journal of Public Economic Theory, Association for Public Economic Theory, vol. 16(1), pages 157-163, February.

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