Barriers to Retail Competition and Prices: Evidence from Spain Alexander W. Hoffmaister

ISBN: 9786613827678

Published: October 1st 2006

ebook

43 pages


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Barriers to Retail Competition and Prices: Evidence from Spain  by  Alexander W. Hoffmaister

Barriers to Retail Competition and Prices: Evidence from Spain by Alexander W. Hoffmaister
October 1st 2006 | ebook | PDF, EPUB, FB2, DjVu, talking book, mp3, RTF | 43 pages | ISBN: 9786613827678 | 9.47 Mb

Why do prices in Spains regions fail to converge? The prime suspects for this puzzling result are differences in regional barriers to entry in retail distribution. This paper develops a Cournot-Nash model of imperfect competition to illustrate theMoreWhy do prices in Spains regions fail to converge?

The prime suspects for this puzzling result are differences in regional barriers to entry in retail distribution. This paper develops a Cournot-Nash model of imperfect competition to illustrate the effect of barriers on prices. A unique data set-derived from an extensive analysis of competition policies in Spain- provides evidence that barriers to entry increase regional prices.

The evidence also suggests that, consistent with the models predictions, barriers to entry raise prices up to a point, and thus indicate that barriers have a threshold effect on prices.



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