Consumers and competition
Waterson, Michael (2003) Consumers and competition. Working Paper. Coventry: University of Warwick, Department of Economics. Warwick economic research papers (No.679).
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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|
|Official Date:||May 2003|
|Number of Pages:||14|
|Status:||Not Peer Reviewed|
|Access rights to Published version:||Open Access|
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.
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