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€œIneffective' competition: a puzzle?

Conventionally, we think of an increase in competition as weakly decreasing prices, increasing the number of consumers served, thus increasing consumer surplus, decreasing firms profits, etc. Here, we demonstrate that, under some tame circumstances, an increase in competition may lead to a price increase in a horizontally differentiated market. We show this relationship for the petrol market in German cities.
Year of publication:
2006
Authors: Ivanov, Andrey V. ; Mueller, Florian
Publisher: München : Sonderforschungsbereich/Transregio 15 - Governance and the Efficiency of Economic Systems (GESY)
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Type of publication: Book / Working Paper
Type of publication (narrower categories): Working Paper
Language: English
Other identifiers:
10.5282/ubm/epub.13434 [DOI]
789970198 [GVK]
hdl:10419/94043 [Handle]
RePEc:trf:wpaper:117 [RePEc]
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Persistent link: https://www.econbiz.de/10010334020
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