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The Causal Effect of Competition on Prices and Quality: Evidence from a Field Experiment

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dc.description.abstract This paper provides the first experimental evidence on the effect of increased competition on the prices and quality of goods. We rely on an intervention that randomized the entry of 61 retail firms (grocery stores) into 72 local markets in the context of a conditional cash transfer program that serves the poor in the Dominican Republic. Six months after the intervention, product prices in the treated districts had decreased by about 6%, while product quality and service quality had not changed. Our results are also informative to the design of social policies. They suggest that policymakers should pay attention to supply conditions even when the policies in question will only affect the demand side of the market. en
dc.title The Causal Effect of Competition on Prices and Quality: Evidence from a Field Experiment en
dc.contributor.author Busso, Matias
dc.contributor.author Galiani, Sebastian
dc.date.accessioned 2018-02-21T16:59:09Z
dc.date.available 2018-02-21T16:59:09Z
dc.date.issued 2018-02-21
dc.identifier.uri http://lacer.lacea.org/handle/123456789/64678
lacea.language.supported en
dc.description Working paper
dc.language.iso en
dc.subject Competition
dc.subject Prices
dc.subject Quality
dc.subject Experimental Evidence
dc.subject Design of Social Policies
dc.type Working Paper


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