Huck, Steffen; Lünser, Gabriele K.; Tyran, Jean-Robert - Abteilung "Ökonomik des Wandels", Wissenschaftszentrum … - 2015
We experimentally examine the effects of price competition in markets for expe-rience goods where sellers can build up … reputations for quality. We compare price competition to monopolistic markets and markets where prices are exogenously fixed … prices are fixed or endoge-nously chosen, we find that price competition lowers efficiency as consumers pay too little …