Consumers and competition
Waterson, Michael, 1950- (2003) Consumers and competition. Working Paper. Coventry: University of Warwick, Department of Economics. (Warwick economic research papers).
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Official URL: http://www2.warwick.ac.uk/fac/soc/economics/resear...
This paper shows that even if all consumers face search costs, if these are below a certain level dependent upon the firm numbers and demand elasticity, the Diamond-type equilibrium with all prices at the monopoly level fails to exist.
|Item Type:||Working or Discussion Paper (Working Paper)|
|Subjects:||H Social Sciences > HF Commerce|
|Divisions:||Faculty of Social Sciences > Economics|
|Library of Congress Subject Headings (LCSH):||Consumer behavior, Pricing -- Mathematical models, Equilibrium (Economics)|
|Series Name:||Warwick economic research papers|
|Publisher:||University of Warwick, Department of Economics|
|Place of Publication:||Coventry|
|Number of Pages:||14|
|Status:||Not Peer Reviewed|
|Access rights to Published version:||Open Access|
|References:||Anderson, S.P. and Renault, R., 1999, Pricing, product diversity and search costs: a Bertrand-Chamberlin-Diamond model, RAND Journal of Economics, 30, 719-735. Carlton, D.W and J.M. Perloff, 2000, Modern Industrial Organization (3rd ed.) (Addison Wesley: Reading MA). Diamond, P., 1971, A model of price adjustment, Journal of Economic Theory, 3, 156-68. Domberger, S. and Sherr, A., 1989, The Impact of Competition on Pricing and Quality of Legal Services, International Review of Law and Economics, 9, 41-56. Hehenkamp, B, 2002, Sluggish consumers: An evolutionary solution to the Bertrand Paradox, Games and Economic Behavior, 40, 44-76. Monopolies and Mergers Commission, 1976, Services of Solicitors in England and Wales, HCP 557, (HMSO: London). Rees, R., 1993, Collusive equilibrium in the great salt duopoly, Economic Journal, 103, 833-848. Stahl, D., 1989, Oligopolistic pricing with sequential consumer search, American Economic Review, 79, 700-712. Supreme Court, 1976, Bates v. State Bar of Arizona, No. 76- 316, 433 US, pp. 350-405.|
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