Utilize este identificador para referenciar este registo:
https://hdl.handle.net/1822/13026
Título: | Price and quality in spatial competition |
Autor(es): | Brekke, Kurt R. Siciliani, Luigi Straume, Odd Rune |
Palavras-chave: | Spatial competition Quality Income effects |
Data: | 2010 |
Editora: | Elsevier 1 |
Revista: | Regional science and urban economics |
Resumo(s): | We study the relationship between competition and quality within a spatial competition framework where firms compete in prices and quality. We generalise existing literature on spatial price–quality competition along several dimensions, including utility functions that are non-linear in income and cost functions that are non-separable in output and quality. Our main message is that the scope for a positive relationship between competition and quality is underestimated in the existing literature. If we allow for income effects by assuming that utility is strictly concave in income, we find that lower transportation costs always lead to higher quality. The presence of income effects might also reverse a previously reported negative relationship between the number of firms and equilibrium quality. This reversal result is further strengthened if there are cost substitutabilities between output and quality. Equilibrium quality provision is always less than socially optimal in the presence of income effects. |
Tipo: | Artigo |
URI: | https://hdl.handle.net/1822/13026 |
DOI: | 10.1016/j.regsciurbeco.2010.06.003 |
ISSN: | 0166-0462 |
Versão da editora: | doi:10.1016/j.regsciurbeco.2010.06.003 |
Arbitragem científica: | yes |
Acesso: | Acesso aberto |
Aparece nas coleções: | NIPE - Artigos em Revistas de Circulação Internacional com Arbitragem Científica |
Ficheiros deste registo:
Ficheiro | Descrição | Tamanho | Formato | |
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Price and quality in spatial competition.pdf | Price and quality in spatial competition | 429,81 kB | Adobe PDF | Ver/Abrir |