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Price and nonprice competition with endogenous market structure

Symeonidis, G (2000) 'Price and nonprice competition with endogenous market structure.' Journal of Economics and Management Strategy, 9 (1). 53 - 83. ISSN 1058-6407

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Abstract

This paper examines the effect of the intensity of short-run price competition and other exogenous variables that affect gross profit margins - such as the degree of product differentiation and the consumers' responsiveness to quality - on market structure and on advertising and R & D expenditure. A key result is that more intense short-run competition can lead to lower concentration in industries with high advertising or R & D intensity, unlike exogenous-sunk-cost industries. Also, price competition has a negative effect on advertising or R & D expenditure. A case study is also presented, which is consistent with the theoretical results of the paper.

Item Type: Article
Subjects: H Social Sciences > HB Economic Theory
Divisions: Faculty of Social Sciences > Economics, Department of
Depositing User: Jim Jamieson
Date Deposited: 16 Aug 2012 10:27
Last Modified: 17 Aug 2017 18:08
URI: http://repository.essex.ac.uk/id/eprint/3700

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