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Journal of Industry, Competition and Trade

, Volume 10, Issue 1, pp 71–85 | Cite as

Modelling Competition in the Textbook Market: Some Lessons still to Learn

  • Juan Luis JiménezEmail author
  • Javier Campos
Article

Abstract

Many European governments still advocate a so-called ‘cultural exception’, intended to protect consumers and smaller bookshops, to keep their book markets isolated from competition. Other countries, with similar aims in mind, have chosen liberalization schemes instead. To reconcile these opposing views, this paper provides a theoretical framework to study the textbook market, depicting it as dominated by two simultaneous forces: horizontal differentiation among booksellers and a vertical relationship between publishers and bookshops. Using this model, we analyse the effects of alternative price schemes on the market structure and how potential benefits from price liberalization are influenced by the number (and size of) booksellers.

Keywords

horizontal differentiation vertical integration retail competition textbooks 
JEL classification L13 L42 L82 

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Copyright information

© Springer Science+Business Media, LLC 2009

Authors and Affiliations

  1. 1.Department of Applied EconomicsUniversity of Las Palmas de Gran CanariaLas PalmasSpain

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