Abstract
Presenting a novel model of local shopping, the benefit of monopoly provision due to market size effects is explored. Prices are lower, variety and aggregate consumer surplus higher, than local shopping but many shoppers' utility falls. Policymakers should take care.
Original language | English |
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Pages (from-to) | 396-398 |
Number of pages | 3 |
Journal | Economics Letters |
Volume | 124 |
Issue number | 3 |
DOIs | |
Publication status | Published - Sept 2014 |
Keywords
- Consumer welfare
- Market expansion effects
- Monopolistic competition