Competition, Product Proliferation and Welfare: A Study of the U.S. Smartphone Market
Ying Fan () and
No 11423, CEPR Discussion Papers from C.E.P.R. Discussion Papers
This paper studies (1) whether, from a welfare point of view, oligopolistic competition leads to too few or too many products in a market, and (2) how a change in competition affects the number and the composition of product offerings. We address these two questions in the context of the U.S. smartphone market. Our findings show the market contains too few products and that a reduction in competition decreases both product number and product variety. These results suggest that merger policies should be stricter when we take into account the effects of a merger on product choice in addition to those on pricing.
Keywords: endogenous product choice; merger; product proliferation; smartphone industry (search for similar items in EconPapers)
JEL-codes: L13 L15 L41 L63 (search for similar items in EconPapers)
New Economics Papers: this item is included in nep-com and nep-mkt
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (2) Track citations by RSS feed
Downloads: (external link)
CEPR Discussion Papers are free to download for our researchers, subscribers and members. If you fall into one of these categories but have trouble downloading our papers, please contact us at email@example.com
Journal Article: Competition, Product Proliferation, and Welfare: A Study of the US Smartphone Market (2020)
Working Paper: Competition, Product Proliferation and Welfare: A Study of the U.S.\ Smartphone Market (2016)
Working Paper: Competition, Product Proliferation and Welfare: A Study of the U.S. Smartphone Market (2014)
This item may be available elsewhere in EconPapers: Search for items with the same title.
Export reference: BibTeX
RIS (EndNote, ProCite, RefMan)
Persistent link: https://EconPapers.repec.org/RePEc:cpr:ceprdp:11423
Ordering information: This working paper can be ordered from
http://www.cepr.org/ ... rs/dp.php?dpno=11423
Access Statistics for this paper
More papers in CEPR Discussion Papers from C.E.P.R. Discussion Papers Centre for Economic Policy Research, 33 Great Sutton Street, London EC1V 0DX.
Bibliographic data for series maintained by ().