Can competition reduce quality?

dc.contributor.author	Brekke, Kurt Richard
dc.contributor.author	Siciliani, Luigi
dc.contributor.author	Straume, Odd Rune
dc.date.accessioned	2013-03-12T13:48:30Z
dc.date.available	2013-03-12T13:48:30Z
dc.date.issued	2012-03
dc.identifier.isbn	0804-6824
dc.identifier.uri	http://hdl.handle.net/11250/163428
dc.description.abstract	We study the effect of competition on quality in markets such as health care, long-term care and education, when providers choose both prices and quality in a setting of spatial competition. We offer a novel mechanism whereby competition leads to lower quality. This mechanism relies on two key assumptions, namely that the providers are motivated and riskaverse. Our proposed mechanism can help explain several empirical findings of a negative effect of competition on quality.	no_NO
dc.language.iso	eng	no_NO
dc.publisher	Norwegian School of Economics, Department of Economics	no_NO
dc.relation.ispartofseries	Discussion paper;9/2012
dc.subject	quality	no_NO
dc.subject	motivated providers	no_NO
dc.subject	price competition	no_NO
dc.subject	risk-averse providers	no_NO
dc.title	Can competition reduce quality?	no_NO
dc.type	Working paper	no_NO
dc.subject.nsi	VDP::Social science: 200::Economics: 210::Economics: 212	no_NO