Global versus Local Competition

Konrad Stahl
Authors registered in the RePEc Author Service: Patrick Legros

No 3333, CEPR Discussion Papers from C.E.P.R. Discussion Papers

Abstract: We analyse the impact of increased outside opportunities brought to consumers by access to a global market on local market performance under monopoly versus oligopoly. If consumers have to choose once where to shop we show that under all forms of organizing the local market, increased competition from the global market will crowd out variety in the local one. The effect of increased global competition on prices is much less clear. While it yields a price reduction under monopoly, prices may increase under oligopoly. We check the robustness of these results in various extensions and draw consequences on competition and industrial policies.

Keywords: Monopoly; Oligopoly; Information; Product quality (search for similar items in EconPapers)
JEL-codes: D83 L13 L14 L15 (search for similar items in EconPapers)
Date: 2002-04
New Economics Papers: this item is included in nep-com and nep-geo
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (1)

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