Price controls, non-price quality competition, and the nonexistence of competitive equilibrium
نویسندگان
چکیده
منابع مشابه
Price controls, non-price quality competition, and the nonexistence of competitive equilibrium
We investigate how price ceilings and floors affect outcomes in continuous time, double auction markets with discrete goods and multiple qualities. When price controls exist, the existence of competitive equilibria (the solution concept of classical market theory) is no longer guaranteed; hence, we investigate the nature of non-price competition and how markets might evolve in its presence. We ...
متن کاملDivision of the Humanities and Social Sciences California Institute of Technology Pasadena, California 91125 Price Controls, Non-price Quality Competition, and the Nonexistence of Competitive Equilibrium
We investigate how price ceilings and floors affect outomces in continuous time, double auction markets with discrete goods and multiple qualities. Since competitive equilibria need not exist in markets with price contols, we investigated the nature of non-price competition and how markets might evolve in its presence. We develop a quality competition model based on matching theory. Equilibria ...
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ژورنال
عنوان ژورنال: Games and Economic Behavior
سال: 2016
ISSN: 0899-8256
DOI: 10.1016/j.geb.2016.06.012