When cost improvements harm consumers

B-Tier
Journal: Review of Industrial Organization
Year: 2007
Volume: 30
Issue: 1
Pages: 63-79

Authors (2)

Score contribution per author:

1.005 = (α=2.01 / 2 authors) × 1.0x B-tier

α: calibrated so average coauthorship-adjusted count equals average raw count

Abstract

This paper demonstrates that improving cost efficiency in a vertical structure might sometimes be detrimental to consumers. This is in stark contrast with the standard microeconomics result which suggests that the surplus generated by any efficiency gain in production is shared between firms and final consumers, depending on the degree of market power. These new results may apply in contexts such as the diffusion of knowledge and techniques and governmental intervention through income support programs. Copyright Springer Science+Business Media, LLC 2007

Technical Details

RePEc Handle
repec:kap:revind:v:30:y:2007:i:1:p:63-79
Journal Field
Industrial Organization
Author Count
2
Added to Database
2026-01-24