| 来源类型 | Discussion paper
|
| 规范类型 | 论文
|
| 来源ID | DP7469
|
| DP7469 Leverage and Asset Bubbles: Averting Armageddon with Chapter 11? |
| Marcus Miller; Joseph Stiglitz
|
| 发表日期 | 2009-09-20
|
| 出版年 | 2009
|
| 语种 | 英语
|
| 摘要 | We study the relationship between competition and quality within a spatial competition framework where firms compete in prices and quality. We generalise existing literature on spatial price-quality competition along several dimensions, including utility functions that are non-linear in income and cost functions that are non-separable in output and quality. Our main message is that the scope for a positive relationship between competition and quality is underestimated in the existing literature. If we allow for income effects by assuming that utility is strictly concave in income, we find that lower transportation costs always lead to higher quality. The presence of income effects might also reverse a previously reported negative relationship between the number of firms and equilibrium quality. This reversal result is further strenghtened if there are cost substitutabilities between output and quality. Equilibrium quality provision is always less than socially optimal in the presence of income effects. |
| 主题 | Industrial Organization
|
| 关键词 | Spatial competition
Quality
Income effects
|
| URL | https://cepr.org/publications/dp7469
|
| 来源智库 | Centre for Economic Policy Research (United Kingdom)
|
| 资源类型 | 智库出版物
|
| 条目标识符 | http://119.78.100.153/handle/2XGU8XDN/536289
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推荐引用方式
GB/T 7714 |
Marcus Miller,Joseph Stiglitz. DP7469 Leverage and Asset Bubbles: Averting Armageddon with Chapter 11?. 2009.
|
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