Quotation Pennerstorfer, Dieter. 2017. Can Competition Keep the Restrooms Clean? Price, Quality and Spatial Competition. Regional Science and Urban Economics 64, 117-136.


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Abstract

This article investigates the influence of competition on price and product quality among Austrian camping sites, a market characterized 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 rather small.

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Publication's profile

Status of publication Published
Affiliation WU
Type of publication Journal article
Journal Regional Science and Urban Economics
Citation Index SSCI
WU Journalrating 2009 A
WU-Journal-Rating new FIN-A, VW-C, WH-B
Language English
Title Can Competition Keep the Restrooms Clean? Price, Quality and Spatial Competition
Volume 64
Year 2017
Page from 117
Page to 136
Reviewed? Y
URL http://dx.doi.org/10.1016/j.regsciurbeco.2017.02.005
DOI 10.1016/j.regsciurbeco.2017.02.005
JEL D22, L13, L81, R32

Associations

People
Pennerstorfer, Dieter (Former researcher)
Organization
Institute for Economic Policy and Industrial Economics IN (Details)
Research areas (Ă–STAT Classification 'Statistik Austria')
5300 Economics (Details)
5370 Industrial economics (Details)
5618 Regional economy (Details)
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