Quality and price competition in spatial markets
We analyse the effects of competition on quality provision in spatial markets where providers compete on both price and quality and where travel distance is a key factor for consumers choice of provider. Examples of such markets include health care, long-term care, child care and education. While po...
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| Veröffentlicht in: | Spatial economics ; Volume 1: Theory |
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| 1. Verfasser: | |
| Weitere Verfasser: | , |
| Pages: | 1 |
| Format: | UnknownFormat |
| Sprache: | eng |
| Veröffentlicht: |
2020
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Tag hinzufügen | Zusammenfassung: | We analyse the effects of competition on quality provision in spatial markets where providers compete on both price and quality and where travel distance is a key factor for consumers choice of provider. Examples of such markets include health care, long-term care, child care and education. While policy makers in many countries have introduced measures to stimulate consumer choice, and thus competition, in such markets, the scientific literature has not produced a consensual view about the resulting effects on quality provision. In this chapter we present a unified theoretical framework that synthesises a number of different insights from the existing theoretical literature. We show that the relationship between competition and quality provision is complex and highly ambiguous and that it is likely to depend on several factors related to both the demand and supply side of the market, such as providers' degree of motivation or risk aversion, the cost relationship between quality and output and the presence of income effects in demand. |
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| ISBN: | 9783030400972 3030400972 |