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Quality and Imperfect Competition

Authors: Gaudin, Germain;

Quality and Imperfect Competition

Abstract

We study the relationship between market power and quality supply. We develop a flexible approach to imperfect competition in product qualities and prices (or quantities), which encompasses several existing models. We uncover sufficient statistics, including our quality parameter, which can be estimated empirically, for many comparative statics. These statistics allow us to extend the seminal analysis of quality distortion under monopoly to imperfect competition, and to analyze the effects of technology shocks and commodity taxes, as well as changes in market concentration. Our approach accommodates various modelling choices related to firms' costs, the timing of the game, or multi-product firms.

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Germany
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selected citations
These citations are derived from selected sources.
This is an alternative to the "Influence" indicator, which also reflects the overall/total impact of an article in the research community at large, based on the underlying citation network (diachronically).
BIP!Citations provided by BIP!
popularity
This indicator reflects the "current" impact/attention (the "hype") of an article in the research community at large, based on the underlying citation network.
BIP!Popularity provided by BIP!
influence
This indicator reflects the overall/total impact of an article in the research community at large, based on the underlying citation network (diachronically).
BIP!Influence provided by BIP!
impulse
This indicator reflects the initial momentum of an article directly after its publication, based on the underlying citation network.
BIP!Impulse provided by BIP!
0
Average
Average
Average
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