This paper investigates the strategic impact of organizational design on product market competition. In a duopoly model …

exhibit different prescribing behavior (volume and value of prescriptions) when confronted with more competition. As there is … no monetary benefit in doing so, this type of (perceived) quality competition originates from GPs satisfying patients … the level of competition. The level of competition is measured by GP density, after controlling for the number of GPs and …

We introduce a new measure of competition: the elasticity of a firm’s profits with respect to its cost level. A higher … popular competition measures such as the price cost margin (PCM). We show that PE and PCM are highly correlated on average …. However, PCM tends to misrepresent the development of competition over time in markets with few firms and high concentration …

This paper introduces a new way to measure competition based on firms' profits.Within a general model, we derive … conditions under which this measure is monotone in competition, where competition can be intensified both through a fall in entry … competition. …

We show that competing firms relax overall competition by lowering future barriers to entry.We illustrate our findings …-period profits.This dampens competition for serving the first-period market. …

.e., strategic ignorance of consumers tastes for the rival brand softens competition. …