Quotation Pennerstorfer, Dieter. 2014. Price and Quality Competition in Spatial Markets: The Case of Camping Sites; WIFO Working Papers, No. 466.


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Abstract

This paper investigates the influence of competition on price and product quality among Austrian camping sites, a market charactised by both horizontal (spatial) and vertical product differentiation. Theoretically, the effect of competition on quality is ambiguous and depends on the degree of cost substitutability between output and quality. Estimating a system of equations shows that intense competition has a positive impact on product quality and a negative effect on prices (conditional on quality). As high quality is associated with high prices, the total effect of competition on prices is quite small.

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Publication's profile

Status of publication Published
Affiliation WU
Type of publication Working/discussion paper, preprint
Language English
Title Price and Quality Competition in Spatial Markets: The Case of Camping Sites; WIFO Working Papers, No. 466
Year 2014
URL http://www.wifo.ac.at/jart/prj3/wifo/resources/person_dokument/person_dokument.jart?publikationsid=47202&mime_type=application/pdf

Associations

Projects
Empirical Evidence on Price and Quality Competition in Spatial Markets
People
Pennerstorfer, Dieter (Former researcher)
Organization
Department of Economics (Weiss) (Details)
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