Price and quality competition in the restaurant industry: effects of restaurants’ reputation
Autor(a) principal: | |
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Data de Publicação: | 2021 |
Outros Autores: | , |
Tipo de documento: | Artigo |
Idioma: | eng |
Título da fonte: | Repositório Científico de Acesso Aberto de Portugal (Repositórios Cientìficos) |
Texto Completo: | https://doi.org/10.34624/rtd.v37i0.26323 |
Resumo: | This paper considers a quality and price competition between two asymmetric restaurants, by establishing a two-stage dynamic game model. We nd that the restaurant with the most reputation offers more food with a higher quality than its rival. We also analyse the effects of the difference of restaurants' reputation on the market equilibrium outcomes. We show that the increase in the reputation difference between restaurants decreases profits of the small restaurant and raises prots of the large restaurant, consumer surplus and social welfare.Furthermore, compared with the case under quantity competition instead of price, social welfare is higher under price competition, while the opposite holds for small restaurant's profits. However, the relationship of large restaurant's profits is ambiguous. |
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Price and quality competition in the restaurant industry: effects of restaurants’ reputationThis paper considers a quality and price competition between two asymmetric restaurants, by establishing a two-stage dynamic game model. We nd that the restaurant with the most reputation offers more food with a higher quality than its rival. We also analyse the effects of the difference of restaurants' reputation on the market equilibrium outcomes. We show that the increase in the reputation difference between restaurants decreases profits of the small restaurant and raises prots of the large restaurant, consumer surplus and social welfare.Furthermore, compared with the case under quantity competition instead of price, social welfare is higher under price competition, while the opposite holds for small restaurant's profits. However, the relationship of large restaurant's profits is ambiguous.Departamento de Economia, Gestão, Engenharia Industrial e Turismo da Universidade de Aveiro2021-10-21T00:00:00Zjournal articlejournal articleinfo:eu-repo/semantics/articleinfo:eu-repo/semantics/publishedVersionapplication/pdfhttps://doi.org/10.34624/rtd.v37i0.26323oai:proa.ua.pt:article/26323Journal of Tourism & Development; Vol 37 (2021); 21-29Revista Turismo & Desenvolvimento; vol. 37 (2021); 21-292182-14531645-9261reponame:Repositório Científico de Acesso Aberto de Portugal (Repositórios Cientìficos)instname:Agência para a Sociedade do Conhecimento (UMIC) - FCT - Sociedade da Informaçãoinstacron:RCAAPenghttps://proa.ua.pt/index.php/rtd/article/view/26323https://doi.org/10.34624/rtd.v37i0.26323https://proa.ua.pt/index.php/rtd/article/view/26323/19030Direitos de Autor (c) 2021 Revista Turismo & Desenvolvimentohttps://creativecommons.org/licenses/by/4.0/info:eu-repo/semantics/openAccessFerreira, FernandaFerreira, FlávioFernandes, Paula Odete2022-09-26T10:57:41Zoai:proa.ua.pt:article/26323Portal AgregadorONGhttps://www.rcaap.pt/oai/openaireopendoar:71602024-03-19T16:06:18.897765Repositório Científico de Acesso Aberto de Portugal (Repositórios Cientìficos) - Agência para a Sociedade do Conhecimento (UMIC) - FCT - Sociedade da Informaçãofalse |
dc.title.none.fl_str_mv |
Price and quality competition in the restaurant industry: effects of restaurants’ reputation |
title |
Price and quality competition in the restaurant industry: effects of restaurants’ reputation |
spellingShingle |
Price and quality competition in the restaurant industry: effects of restaurants’ reputation Ferreira, Fernanda |
title_short |
Price and quality competition in the restaurant industry: effects of restaurants’ reputation |
title_full |
Price and quality competition in the restaurant industry: effects of restaurants’ reputation |
title_fullStr |
Price and quality competition in the restaurant industry: effects of restaurants’ reputation |
title_full_unstemmed |
Price and quality competition in the restaurant industry: effects of restaurants’ reputation |
title_sort |
Price and quality competition in the restaurant industry: effects of restaurants’ reputation |
author |
Ferreira, Fernanda |
author_facet |
Ferreira, Fernanda Ferreira, Flávio Fernandes, Paula Odete |
author_role |
author |
author2 |
Ferreira, Flávio Fernandes, Paula Odete |
author2_role |
author author |
dc.contributor.author.fl_str_mv |
Ferreira, Fernanda Ferreira, Flávio Fernandes, Paula Odete |
description |
This paper considers a quality and price competition between two asymmetric restaurants, by establishing a two-stage dynamic game model. We nd that the restaurant with the most reputation offers more food with a higher quality than its rival. We also analyse the effects of the difference of restaurants' reputation on the market equilibrium outcomes. We show that the increase in the reputation difference between restaurants decreases profits of the small restaurant and raises prots of the large restaurant, consumer surplus and social welfare.Furthermore, compared with the case under quantity competition instead of price, social welfare is higher under price competition, while the opposite holds for small restaurant's profits. However, the relationship of large restaurant's profits is ambiguous. |
publishDate |
2021 |
dc.date.none.fl_str_mv |
2021-10-21T00:00:00Z |
dc.type.driver.fl_str_mv |
journal article journal article info:eu-repo/semantics/article |
dc.type.status.fl_str_mv |
info:eu-repo/semantics/publishedVersion |
format |
article |
status_str |
publishedVersion |
dc.identifier.uri.fl_str_mv |
https://doi.org/10.34624/rtd.v37i0.26323 oai:proa.ua.pt:article/26323 |
url |
https://doi.org/10.34624/rtd.v37i0.26323 |
identifier_str_mv |
oai:proa.ua.pt:article/26323 |
dc.language.iso.fl_str_mv |
eng |
language |
eng |
dc.relation.none.fl_str_mv |
https://proa.ua.pt/index.php/rtd/article/view/26323 https://doi.org/10.34624/rtd.v37i0.26323 https://proa.ua.pt/index.php/rtd/article/view/26323/19030 |
dc.rights.driver.fl_str_mv |
Direitos de Autor (c) 2021 Revista Turismo & Desenvolvimento https://creativecommons.org/licenses/by/4.0/ info:eu-repo/semantics/openAccess |
rights_invalid_str_mv |
Direitos de Autor (c) 2021 Revista Turismo & Desenvolvimento https://creativecommons.org/licenses/by/4.0/ |
eu_rights_str_mv |
openAccess |
dc.format.none.fl_str_mv |
application/pdf |
dc.publisher.none.fl_str_mv |
Departamento de Economia, Gestão, Engenharia Industrial e Turismo da Universidade de Aveiro |
publisher.none.fl_str_mv |
Departamento de Economia, Gestão, Engenharia Industrial e Turismo da Universidade de Aveiro |
dc.source.none.fl_str_mv |
Journal of Tourism & Development; Vol 37 (2021); 21-29 Revista Turismo & Desenvolvimento; vol. 37 (2021); 21-29 2182-1453 1645-9261 reponame:Repositório Científico de Acesso Aberto de Portugal (Repositórios Cientìficos) instname:Agência para a Sociedade do Conhecimento (UMIC) - FCT - Sociedade da Informação instacron:RCAAP |
instname_str |
Agência para a Sociedade do Conhecimento (UMIC) - FCT - Sociedade da Informação |
instacron_str |
RCAAP |
institution |
RCAAP |
reponame_str |
Repositório Científico de Acesso Aberto de Portugal (Repositórios Cientìficos) |
collection |
Repositório Científico de Acesso Aberto de Portugal (Repositórios Cientìficos) |
repository.name.fl_str_mv |
Repositório Científico de Acesso Aberto de Portugal (Repositórios Cientìficos) - Agência para a Sociedade do Conhecimento (UMIC) - FCT - Sociedade da Informação |
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1799130523953528832 |