Bitte verwenden Sie diesen Link, um diese Publikation zu zitieren, oder auf sie als Internetquelle zu verweisen: https://hdl.handle.net/10419/142549 
Erscheinungsjahr: 
2009
Schriftenreihe/Nr.: 
EERI Research Paper Series No. 17/2009
Verlag: 
Economics and Econometrics Research Institute (EERI), Brussels
Zusammenfassung: 
We show that the entry of a second firm in a horizontally differentiated market (ala Hotelling) may harm consumers as prices increase and consumer's surplus possibly decrease. We first derive the price and the consumer's surplus of a monopoly which is located at the center of the market. When a second firm enters the market the first firm repositions and the two firms locate at their equilibrium points. Although competition adds to variety and increases consumer's surplus, the post entry increase in price may outweight the gains from extra variety and make consumers worse off.
Schlagwörter: 
Horizontal di¤erentiation
welfare analysis
product repositioning
JEL: 
L13
D43
D60
Dokumentart: 
Working Paper

Datei(en):
Datei
Größe
190.14 kB





Publikationen in EconStor sind urheberrechtlich geschützt.