Competition and Demographics
Mainstream economics views demographic changes in the structure of households as of little relevance for the behavior of firms or the functioning of markets. The present paper dispels this view by arguing that changes in the number of non-workers c...
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| Format: | Policy Research Working Paper |
| Language: | English |
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World Bank, Washington, DC
2012
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| Online Access: | http://documents.worldbank.org/curated/en/2008/02/9003234/competition-demographics http://hdl.handle.net/10986/6420 |
| Summary: | Mainstream economics views demographic
changes in the structure of households as of little
relevance for the behavior of firms or the functioning of
markets. The present paper dispels this view by arguing that
changes in the number of non-workers could affect the
intensity with which consumers search for best prices and
therefore the level of competition. The author also analyzes
the relationship between income and competition, which some
studies suggest is negative. The author argues that the
negative relationship is most likely due to the demographic
factors discussed. |
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