Discussion Paper Details
Please find the details for DP835 in an easy to copy and paste format below:
Title: Do Firms' Product Lines Include Too Many Varieties, and Do Shops Open Too Many Days?
Author(s): Paul Klemperer and Atilano Jorge Padilla
Publication Date: August 1993
Keyword(s): Competition Policy, Excess Variety, Foreclosure, Merger Policy, Product Lines, Shopping Costs, Sunday Trading and Switching Costs
Programme Area(s): Applied Macroeconomics
Abstract: This paper attempts to give a meaning to the empty concept of subsidiarity. It examines various kinds of government activity with respect to the optimal layer of government in Europe at which these activities should be performed. The paper criticizes Europe's industrial policies and its protectionism, and it points to European-wide public-goods and redistribution problems which make centralized government actions a matter of necessity. The paper's main focus is on the free movement of goods, capital, labour and services. It is argued that these movements will induce a process of fierce fiscal competition in which an inverse redistribution from the poor to the rich will emerge, where consumer protection becomes eroded and environmental standards are overdrawn.
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Klemperer, P and Padilla, A. 1993. 'Do Firms' Product Lines Include Too Many Varieties, and Do Shops Open Too Many Days?'. London, Centre for Economic Policy Research. https://cepr.org/active/publications/discussion_papers/dp.php?dpno=835