Price and Quality Competition in Spatial Markets. The Case of Camping Sites
This paper investigates the influence of competition on price and product quality among Austrian camping sites, a market charactised by both horizontal (spatial) and vertical product differentiation. Theoretically, the effect of competition on quality is ambiguous and depends on the degree of cost substitutability between output and quality. Estimating a system of equations shows that intense competition has a positive impact on product quality and a negative effect on prices (conditional on quality). As high quality is associated with high prices, the total effect of competition on prices is quite small.
|Date of creation:||02 Apr 2014|
|Date of revision:|
|Contact details of provider:|| Postal: Arsenal Object 20, A-1030 Wien|
Phone: (+43 1) 798 26 01-0
Fax: (+43 1) 798 93 86
Web page: http://www.wifo.ac.at/
More information through EDIRC
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.:
- Ambarish Chandra & Mariano Tappata, 2011. "Consumer search and dynamic price dispersion: an application to gasoline markets," RAND Journal of Economics, RAND Corporation, vol. 42(4), pages 681-704, December.
- 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.
- Ching-to Ma & James Burgess, 1993.
"Quality competition, welfare, and regulation,"
Journal of Economics,
Springer, vol. 58(2), pages 153-173, June.
- Nuscheler, Robert, 2002.
"Physician reimbursement, time-consistency and the quality of care
[Ärztevergütung, Zeitkonsistenz und die Qualität medizinischer Leistungen]," Discussion Papers, Research Unit: Market Processes and Governance FS IV 02-16, Social Science Research Center Berlin (WZB).
- Robert Nuscheler, 2003. "Physician Reimbursement, Time-Consistency and the Quality of Care," Journal of Institutional and Theoretical Economics (JITE), Mohr Siebeck, Tübingen, vol. 159(2), pages 302-, June.
- Kurt R. Brekke & Luigi Siciliani & Odd Rune Straume, 2009.
"Price and quality in spatial competition,"
NIPE Working Papers
21/2009, NIPE - Universidade do Minho.
- Firgo, Matthias & Pennerstorfer, Dieter & Weiss, Christoph R., 2015.
"Centrality and pricing in spatially differentiated markets: The case of gasoline,"
International Journal of Industrial Organization,
Elsevier, vol. 40(C), pages 81-90.
- Matthias Firgo & Dieter Pennerstorfer & Christoph Weiss, 2012. "Centrality and Pricing in Spatially Differentiated Markets: The Case of Gasoline," WIFO Working Papers 432, WIFO.
- Gravelle, Hugh, 1999. "Capitation contracts: access and quality," Journal of Health Economics, Elsevier, vol. 18(3), pages 315-340, June.
- Hugh Gravelle & Anthony Scott & Peter Sivey & Jongsay Yong, 2013.
"Competition, Prices and Quality in the Market for Physician Consultations,"
Melbourne Institute Working Paper Series
wp2013n23, Melbourne Institute of Applied Economic and Social Research, The University of Melbourne.
- Hugh Gravelle & Anthony Scott & Peter Sivey & Jongsay Yong, 2016. "Competition, prices and quality in the market for physician consultations," Journal of Industrial Economics, Wiley Blackwell, vol. 64(1), pages 135-169, 03.
- Hugh Gravelle & Anthony Scott & Peter Sivey & Jongsay Yong, 2013. "Competition, prices, and quality in the market for physician consultations," Working Papers 089cherp, Centre for Health Economics, University of York.
- Gaynor, Martin, 2007. "Competition and Quality in Health Care Markets," Foundations and Trends(R) in Microeconomics, now publishers, vol. 2(6), pages 441-508, February.
- William M. Emmons III & Robin A. Prager, 1997. "The Effects of Market Structure and Ownership on Prices and Service Offerings in the U.S. Cable Television Industry," RAND Journal of Economics, The RAND Corporation, vol. 28(4), pages 732-750, Winter.
- Mobley, Lee R & Frech, Ted E & Anselin, Luc, 2008.
"Spatial Interaction, Spatial Multipliers, and Hospital Competition,"
University of California at Santa Barbara, Economics Working Paper Series
qt4m8862hd, Department of Economics, UC Santa Barbara.
- Lee Mobley & H. E. Frech & Luc Anselin, 2009. "Spatial Interaction, Spatial Multipliers and Hospital Competition," International Journal of the Economics of Business, Taylor & Francis Journals, vol. 16(1), pages 1-17.
- Dakshina De Silva & Caroline Elliott & Robert Simmons, 2013. "Restaurant wars," Working Papers 44312700, Lancaster University Management School, Economics Department.
- James Joseph Fogarty, 2012. "Expert opinion and cuisine reputation in the market for restaurant meals," Applied Economics, Taylor & Francis Journals, vol. 44(31), pages 4115-4123, November.
- George A. Akerlof, 1970. "The Market for "Lemons": Quality Uncertainty and the Market Mechanism," The Quarterly Journal of Economics, Oxford University Press, vol. 84(3), pages 488-500.
- Brekke, Kurt R. & Nuscheler, Robert & Straume, Odd Rune, 2002.
"Quality and location choices under price regulation,"
Working Papers in Economics
24/02, University of Bergen, Department of Economics.
- Kurt R. Brekke & Robert Nuscheler & Odd Rune Straume, 2006. "Quality and Location Choices under Price Regulation," Journal of Economics & Management Strategy, Wiley Blackwell, vol. 15(1), pages 207-227, 03.
- Brekke, Kurt R. & Nuscheler, Robert & Straume, Odd Rune, 2002.
"Quality and location choices under price regulation
[Qualitäts- und Standortwahl bei Preisregulierung]," Discussion Papers, Research Unit: Market Processes and Governance FS IV 02-28, Social Science Research Center Berlin (WZB).
- Bresnahan, T.F & Reiss, P.C., 1989.
"Entry And Competition In Concentrated Markets,"
151, Stanford - Studies in Industry Economics.
- Marcello Montefiori, 2005. "Spatial competition for quality in the market for hospital care," The European Journal of Health Economics, Springer;Deutsche Gesellschaft für Gesundheitsökonomie (DGGÖ), vol. 6(2), pages 131-135, June.
- Economides, Nicholas, 1993. "Quality variations in the circular model of variety-differentiated products," Regional Science and Urban Economics, Elsevier, vol. 23(2), pages 235-257, April.
- Paolo Roma & Giuseppe Di Martino & Giovanni Perrone, 2013. "What to show on the wine labels: a hedonic analysis of price drivers of Sicilian wines," Applied Economics, Taylor & Francis Journals, vol. 45(19), pages 2765-2778, July.
- Matthew Lewis, 2008. "PRICE DISPERSION AND COMPETITION WITH DIFFERENTIATED SELLERS -super-," Journal of Industrial Economics, Wiley Blackwell, vol. 56(3), pages 654-678, 09.
- Martin Gaynor, 2006.
"What Do We know About Competition and Quality in Health Care Markets?,"
The Centre for Market and Public Organisation
06/151, Department of Economics, University of Bristol, UK.
- Martin Gaynor, 2006. "What Do We Know About Competition and Quality in Health Care Markets?," NBER Working Papers 12301, National Bureau of Economic Research, Inc.
- Martin Gaynor, . "What Do We Know About Competition and Quality in Health Care Markets?," GSIA Working Papers 2006-E62, Carnegie Mellon University, Tepper School of Business.
- Luigi Benfratello & Massimiliano Piacenza & Stefano Sacchetto, 2009. "Taste or reputation: what drives market prices in the wine industry? Estimation of a hedonic model for Italian premium wines," Applied Economics, Taylor & Francis Journals, vol. 41(17), pages 2197-2209.
- Pennerstorfer, Dieter & Weiss, Christoph, 2013. "Spatial clustering and market power: Evidence from the retail gasoline market," Regional Science and Urban Economics, Elsevier, vol. 43(4), pages 661-675.
- Domberger, Simon & Hall, Christine & Li, Eric Ah Lik, 1995. "The Determinants of Price and Quality in Competitively Tendered Contracts," Economic Journal, Royal Economic Society, vol. 105(433), pages 1454-70, November.
- David Andersson, 2010. "Hotel attributes and hedonic prices: an analysis of internet-based transactions in Singapore’s market for hotel rooms," The Annals of Regional Science, Springer;Western Regional Science Association, vol. 44(2), pages 229-240, April.
- Raphael Thomadsen, 2005. "The Effect of Ownership Structure on Prices in Geographically Differentiated Industries," RAND Journal of Economics, The RAND Corporation, vol. 36(4), pages 908-929, Winter.
- Steven C. Salop, 1979. "Monopolistic Competition with Outside Goods," Bell Journal of Economics, The RAND Corporation, vol. 10(1), pages 141-156, Spring.
- Eric Giraud-Héraud & Hakim Hammoudi & Mahdi Mokrane, 2003. "Multiproduct firm behaviour in a differentiated market," Canadian Journal of Economics, Canadian Economics Association, vol. 36(1), pages 41-61, February.
- Michael J. Mazzeo, 2002. "Product Choice and Oligopoly Market Structure," RAND Journal of Economics, The RAND Corporation, vol. 33(2), pages 221-242, Summer.
- Varian, Hal R, 1980. "A Model of Sales," American Economic Review, American Economic Association, vol. 70(4), pages 651-59, September.
- Stahl, Dale O, II, 1989. "Oligopolistic Pricing with Sequential Consumer Search," American Economic Review, American Economic Association, vol. 79(4), pages 700-712, September.
- Combris, Pierre & Lecocq, Sebastien & Visser, Michael, 1997. "Estimation for a Hedonic Price Equation for Bordeaux Wine: Does Quality Matter?," Economic Journal, Royal Economic Society, vol. 107(441), pages 390-402, March.
When requesting a correction, please mention this item's handle: RePEc:wfo:wpaper:y:2014:i:466. See general information about how to correct material in RePEc.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Ilse Schulz)
If references are entirely missing, you can add them using this form.