Competition versus efficiency

Soumyananda Dinda () and Arijit Mukherjee

Discussion Papers from University of Nottingham, School of Economics

Abstract: It is usually believed that higher competition, implying more active firms, benefits consumers and encourages the antitrust authorities to foster competition. We show that this view can be misleading, and higher competition may actually make the consumers worse-off. We suggest that the antitrust authorities should be interested in reducing inefficiency instead of increasing competition through more firms.

Keywords: Competition; Consumer welfare; Cost asymmetry; Tax (search for similar items in EconPapers)
Date: 2010-11
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Persistent link: https://EconPapers.repec.org/RePEc:not:notecp:10/11

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