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  1. Quality and location choices under price regulation

    Abstract: "In a model of spatial competition, we analyse the equilibrium outcomes in markets where the product price is exogenous. Using an extended version of the Hotelling model, we assume that firms choose their locations and the quality of the... more

     

    Abstract: "In a model of spatial competition, we analyse the equilibrium outcomes in markets where the product price is exogenous. Using an extended version of the Hotelling model, we assume that firms choose their locations and the quality of the product they supply. We derive the optimal price set by a welfarist regulator and find that this (second-best) price causes over-investment in quality and an insufficient degree of horizontal differentiation (compared with the first-best solution) if the cost of investing in product quality, or the transportation cost of consumers, is sufficiently high. By comparing the case of price competition, we also identify a hitherto unnoticed benefit of regulation, namely improved locational efficiency." (author's abstract)

     

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    Source: Union catalogues
    Language: English
    Media type: Book
    Format: Online
    Other identifier:
    oai:gesis.izsoz.de:document/11314
    DDC Categories: 330; 380; 650; 670; 330
    Series: Discussion Papers / Wissenschaftszentrum Berlin für Sozialforschung, Forschungsschwerpunkt Markt und politische Ökonomie ; Bd. 02-28
    Subjects: Räumliche Konkurrenz; Qualität; Standort; Administrierter Preis; Preisüberwachung; Staatliche Preispolitik; Theorie
    Other subjects: (stw)Räumlicher Wettbewerb; (stw)Produktqualität; (stw)Standort; (stw)Preisregulierung; (stw)Theorie; (thesoz)Produkt; (thesoz)Auswirkung; (thesoz)Preisbildung; (thesoz)Regulierung; (thesoz)Standortwahl; (thesoz)Wettbewerb; (thesoz)Qualität; (thesoz)Interdependenz; (thesoz)Produktpolitik; (thesoz)Gleichgewicht; (thesoz)gesetzliche Regelung; (thesoz)Modellentwicklung; Arbeitspapier; Graue Literatur; Buch; Online-Publikation; Als Aufsatz endgültig erschienen
    Scope: Online-Ressource, 24 S.
    Notes:

    Veröffentlichungsversion

  2. Quality and location choices under price regulation