Price, value and competition between firms
Pfister, Étienne
Price, value and competition between firms - 2023.
28
This article discusses the various interactions between the prices of products, their value and the competition that exists on the market. From a static viewpoint, competition reduces products’ prices and transfers the value of the product from producers to customers. Producers may thus seek to escape competition, either through anticompetitive conducts, exogeneous barriers to competition or by increasing the value of their products. Hence, from a dynamic standpoint, competition may then increase the value of products even if this also entails an increase in market power. Finally, in some market situations, conducts that may apparently reduce competition may also enhance the value of the sold products.
Price, value and competition between firms - 2023.
28
This article discusses the various interactions between the prices of products, their value and the competition that exists on the market. From a static viewpoint, competition reduces products’ prices and transfers the value of the product from producers to customers. Producers may thus seek to escape competition, either through anticompetitive conducts, exogeneous barriers to competition or by increasing the value of their products. Hence, from a dynamic standpoint, competition may then increase the value of products even if this also entails an increase in market power. Finally, in some market situations, conducts that may apparently reduce competition may also enhance the value of the sold products.
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