A note on the adverse effect of competition on consumers: adverse effect of competition on consumers
(2013)
Journal Article
Dinda, S., & Mukherjee, A. (2014). A note on the adverse effect of competition on consumers: adverse effect of competition on consumers. Journal of Public Economic Theory, 16(1), 157-163. https://doi.org/10.1111/jpet.12044
It is usually believed that higher competition, implying more active firms, benefits consumers. We show that this may not be the case in an industry with asymmetric cost firms. A rise in the number of more cost‐inefficient firms makes the consumers w... Read More about A note on the adverse effect of competition on consumers: adverse effect of competition on consumers.