The welfare effects of location and quality in oligopoly

Galina Zudenkova ()
Authors registered in the RePEc Author Service: Luis C. Corchon

UC3M Working papers. Economics from Universidad Carlos III de Madrid. Departamento de Economía

Abstract: In this paper we argue that two important causes of welfare losses in oligopolistic markets have been neglected. We show that in models where location is endogenous, welfare losses arising from wrong locations or from lack of market coverage may be substantial despite firms competing in prices. In contrast, welfare losses arising from quality choice are modest but they might vary discontinuously with the size of the market.

Keywords: Welfare; losses; Horizontal; differentiation; Hotelling; model; Salop; model; Vertical; differentiation (search for similar items in EconPapers)
JEL-codes: D61 L11 L13 L50 (search for similar items in EconPapers)
Date: 2010-09-07
New Economics Papers: this item is included in nep-com
References: View references in EconPapers View complete reference list from CitEc
Citations:

Downloads: (external link)
https://e-archivo.uc3m.es/rest/api/core/bitstreams ... f764499820fe/content (application/pdf)

Related works:
Journal Article: The Welfare Effects of Location and Quality in Oligopoly (2013)
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:cte:werepe:we102008

Access Statistics for this paper

More papers in UC3M Working papers. Economics from Universidad Carlos III de Madrid. Departamento de Economía
Bibliographic data for series maintained by Ana Poveda ().