The New Palgrave Dictionary of Economics

2018 Edition
| Editors: Macmillan Publishers Ltd

Non-price Competition

  • K. J. Lancaster
Reference work entry


In markets for any goods but those which are absolutely homogeneous in both reality and perception, there are many ways in which firms may compete, price being one, but only one of these. The others include advertising and other forms of increased selling effort, product differentiation, improvement in product quality, customer service, warranties and the like, and bundling of other goods or services without charge or at low prices.

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  1. Bain, J.S. 1956. Barriers to new competition. Cambridge, MA: Harvard University Press.CrossRefGoogle Scholar
  2. Schmalensee, R. 1986. Advertising and market structure. In New developments in the analysis of market structure, ed. J.E. Stiglitz and G.F. Mathewson. Cambridge, MA: MIT Press.Google Scholar
  3. Spence, A.M. 1977. Nonprice competition. American Economic Review 67: 255–259.Google Scholar
  4. Stigler, G.J. 1968. Price and nonprice competition. Journal of Political Economy 76: 149–154.CrossRefGoogle Scholar

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© Macmillan Publishers Ltd. 2018

Authors and Affiliations

  • K. J. Lancaster
    • 1
  1. 1.