Economics Dictionary of ArgumentsHome
| |||
|
| |||
| Competition: Competition is a rivalry or contest between individuals or groups striving for a common goal, often involving effort, skill, or resources._____________Annotation: The above characterizations of concepts are neither definitions nor exhausting presentations of problems related to them. Instead, they are intended to give a short introduction to the contributions below. – Lexicon of Arguments. | |||
| Author | Concept | Summary/Quotes | Sources |
|---|---|---|---|
|
Victor D. Norman on Competition - Dictionary of Arguments
Krugman III 95 Competition/Victor D. Norman: To see whether our assumption(1) that the oligopoly equilibrium involves Bertrand price competition* is important, we also simulate the effects of entry assuming Cournot competition in the number of seats offered on each flight. >Cournot Competition, >Bertrand Competition, >Sensitivity analysis, >Models, >Economic models, >Model theory, >Equilibrium, >Oligopolies. Equilibrium: As is seen, the simulated equilibria are virtually identical, except as regards the degree of price discrimination between Euroclass and tourist-class passengers: As should be expected, Cournot competition (being less aggressive than Bertrand) involves greater price discrimination; consequently, the relative price of Euroclass tickets falls more in the case of Bertrand than in the Cournot case. >Price discrimination. Krugman III 99 Example: entry of new competitors into the European flight market: The analysis(1) indicates that there would be very significant effects of entry into the Oslo-Stockholm market. Prices could fall dramatically, and there could be some (more modest) increase in flight frequency. Consumer gains would, not surprisingly, outweigh SAS losses. Moreover, and perhaps more surprisingly, even though there would be a significant shift of profits from SAS to new entrants, the net welfare effect on Scandinavia would be positive and significant even if the entrants came from outside Scandinavia. Costs: The analysis also indicates that these conclusions are robust, both with respect to the average and marginal costs of the firms and to the nature of the market game. In particular, it does not seem to matter greatly whether a future oligopoly equilibrium involves price or quantity competition. The reason the two equilibria are virtually identical is that the capacity constraint on each flight is binding in all our simulated equilibria. *((s) In the economics of oligopoly, the Cournot and Bertrand models explore different ways firms can compete. Cournot models focus on quantity competition, where firms choose output levels, while Bertrand models focus on price competition, where firms set prices. In Bertrand competition, firms making identical products often reach an equilibrium where prices are equal to marginal costs, leading to zero economic profits. In contrast, Cournot competition typically leads to higher prices and positive profits for firms, as they limit their output to maximize profits.) 1. Victor D. Norman and Siri P. Strandenes. „Deregulation of Scandinavian Airlines: A Case Study of the Oslo-Stockholm Route.“ In: Paul Krugman and Alasdair Smith (Eds.) 1994. Empirical Studies of Strategic Trade Policy. Chicago: The University of Chicago Press. Victor D. Norman and Siri P. Strandenes. „Deregulation of Scandinavian Airlines: A Case Study of the Oslo-Stockholm Route.“ In: Paul Krugman and Alasdair Smith (Eds.) 1994. Empirical Studies of Strategic Trade Policy. Chicago: The University of Chicago Press._____________Explanation of symbols: Roman numerals indicate the source, arabic numerals indicate the page number. The corresponding books are indicated on the right hand side. ((s)…): Comment by the sender of the contribution. Translations: Dictionary of Arguments The note [Concept/Author], [Author1]Vs[Author2] or [Author]Vs[term] resp. "problem:"/"solution:", "old:"/"new:" and "thesis:" is an addition from the Dictionary of Arguments. If a German edition is specified, the page numbers refer to this edition. |
Norman, Victor D. EconKrug I Paul Krugman Volkswirtschaftslehre Stuttgart 2017 EconKrug II Paul Krugman Robin Wells Microeconomics New York 2014 Krugman III Paul Krugman Alasdair Smith Empirical Studies of Strategic Trade Policy Chicago: The University of Chicago Press 1994 |
||
Authors A B C D E F G H I J K L M N O P Q R S T U V W X Y Z
Concepts A B C D E F G H I J K L M N O P Q R S T U V W X Y Z
