Please use this identifier to cite or link to this item: https://hdl.handle.net/10419/129021 
Year of Publication: 
2014
Series/Report no.: 
WIFO Working Papers No. 466
Publisher: 
Austrian Institute of Economic Research (WIFO), Vienna
Abstract: 
This paper investigates the influence of competition on price and product quality among Austrian camping sites, a market charactised by both horizontal (spatial) and vertical product differentiation. Theoretically, the effect of competition on quality is ambiguous and depends on the degree of cost substitutability between output and quality. Estimating a system of equations shows that intense competition has a positive impact on product quality and a negative effect on prices (conditional on quality). As high quality is associated with high prices, the total effect of competition on prices is quite small.
Subjects: 
Spatial competition
price and quality competition
retail markets
camping sites
Document Type: 
Working Paper

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