A NOTE ON THE ADVERSE EFFECT OF COMPETITION ON CONSUMERS

被引:12
作者
Dinda, Soumyananda [1 ]
Mukherjee, Arijit [2 ]
机构
[1] Sidho Kanho Birsha Univ, Dept Econ, Purulia 723101, W Bengal, India
[2] Univ Loughborough, Sch Business & Econ, Loughborough LE11 3TU, Leics, England
关键词
AD-VALOREM; PRICE; TAXATION; FIRMS; EFFICIENCY; OLIGOPOLY; WELFARE; NUMBER; ENTRY; TAXES;
D O I
10.1111/jpet.12044
中图分类号
F [经济];
学科分类号
02 ;
摘要
It is usually believed that higher competition, implying more active firms, benefits consumers. We show that this may not be the case in an industry with asymmetric cost firms. A rise in the number of more cost-inefficient firms makes the consumers worse off in the presence of a welfare-maximizing tax/subsidy policy. A rise in the number of more cost-inefficient firms also reduces social welfare.
引用
收藏
页码:157 / 163
页数:7
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