Price-increasing competition in oligopolies with low-quality, costbased firm entry

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dc.catalogadorpva
dc.contributor.advisorMontero Ayala, Juan Pablo
dc.contributor.advisorFleitas, Sebastián
dc.contributor.authorDussaillant Aguado, Sebastián Patricio
dc.contributor.otherPontificia Universidad Católica de Chile. Instituto de Economía
dc.date.accessioned2025-01-13T19:35:40Z
dc.date.available2025-01-13T19:35:40Z
dc.date.issued2024
dc.date.updated2025-01-10T23:25:15Z
dc.descriptionTesis (Magíster en Economía)--Pontificia Universidad Católica de Chile, 2024
dc.description.abstractIn October 2015, the first public pharmacy opened in Chile, providing lower prices on various drugs. According to Atal et al. (2024), the entry of public pharmacies into local markets led to a price increase by private pharmacies of around 1%. Similar results have been found in other industries. I derive conditions under which this outcome could be observed by developing a model that incorporates both vertical and horizontal differentiation in an oligopolistic market. I found that incumbent high-quality firms can experience a price increase in response to the entry of a lower- quality, cost-based competitor if transportation costs are intermediate or high (i.e. moderate or low degree of competition), under certain sets of parameters. Furthermore, for intermediate values of transportation costs, vertical differentiation is necessary to observe a price increase. Moreover, price-increasing competition is possible under low transportation costs if the incumbent firms perfectly collude. It is also noted that the entry could benefit incumbent firms and harm consumer welfare.
dc.fechaingreso.objetodigital2025-01-10
dc.format.extent62 páginas
dc.fuente.origenAutoarchivo
dc.identifier.doi10.7764/tesisUC/ECO/89619
dc.identifier.urihttps://doi.org/10.7764/tesisUC/ECO/89619
dc.identifier.urihttps://repositorio.uc.cl/handle/11534/89619
dc.information.autorucInstituto de Economía; Montero Ayala, Juan Pablo; 0000-0002-6815-0158; 87534
dc.information.autorucInstituto de Economía; Fleitas, Sebastián; 0000-0003-3950-0371; 1324765
dc.information.autorucFacultad de Economía y Administración; Dussaillant Aguado, Sebastián Patricio; S/I; 1087507
dc.language.isoen
dc.nota.accesocontenido completo
dc.rightsacceso abierto
dc.rights.licenseAtribución 4.0 Internacional (CC BY 4.0)
dc.rights.urihttps://creativecommons.org/licenses/by/4.0/deed.es
dc.subjectProduct differentiation
dc.subjectEntry
dc.subjectOligopoly competition
dc.subjectPrice competition
dc.subject.ddc330
dc.subject.deweyEconomíaes_ES
dc.subject.ods10 Reduced inequalities
dc.subject.odspa10 Reducción de las desigualdades
dc.titlePrice-increasing competition in oligopolies with low-quality, costbased firm entry
dc.typetesis de maestría
sipa.codpersvinculados87534
sipa.codpersvinculados1324765
sipa.codpersvinculados1087507
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