| 来源类型 | Discussion paper |
| 规范类型 | 论文 |
| 来源ID | DP9810 |
| DP9810 Can competition reduce quality? | |
| Kurt Richard Brekke; Luigi Siciliani | |
| 发表日期 | 2014-02-02 |
| 出版年 | 2014 |
| 语种 | 英语 |
| 摘要 | In a spatial competition setting there is usually a non-negative relationship between competition and quality. In this paper we offer a novel mechanism whereby competition leads to lower quality. This mechanism relies on two key assumptions, namely that the providers are motivated and risk-averse. We show that the negative relationship between competition and quality is robust to any given number of fims in the market and whether quality and price decisions are simultaneous or sequential. We also show that competition may improve social welfare despite the adverse effect on quality. Our proposed mechanism can help explain empirical findings of a negative effect of competition on quality in markets such as health care, long-term care, and higher education. |
| 主题 | Industrial Organization |
| 关键词 | Motivated providers Quality and price competition Risk-averse providers |
| URL | https://cepr.org/publications/dp9810 |
| 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/538646 |
| 推荐引用方式 GB/T 7714 | Kurt Richard Brekke,Luigi Siciliani. DP9810 Can competition reduce quality?. 2014. |
| 条目包含的文件 | 条目无相关文件。 | |||||
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