Product market competition and fraud in a model of price competition with horizontally differentiated products

Rainer Andergassen

Economics Bulletin, 2015, vol. 35, issue 3, 1669-1674

Abstract: We investigate in a model of horizontally differentiated products the effect of product market competition on fraudulent behavior. We show that the relationship between fraud and competition depends on the source of variation of competition (number of firms, product substitutability and market size) as well as on the endogeneity or exogeneity of industry structure.

Keywords: fraudulent behavior; competition; Bayesian Nash equilibrium (search for similar items in EconPapers)
JEL-codes: D8 L1 (search for similar items in EconPapers)
Date: 2015-07-24
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Citations: View citations in EconPapers (1)

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