Competition, prices and x-efficiency
By: Walter J. Primeaux
Contributors: University of Illinois at Urbana-Champaign. College of Commerce and Business Administration
Series: Faculty working papers -- no. 521; Faculty working papers -- no. 521.
Publisher: College of Commerce and Business Administration, University of Illinois at Urbana-Champaign
Published: 1978
Place of publication: [Urbana, Ill.]
Language: eng
Number of pages: 19
Description: "The purposes of this study were (1) to assess the magnitude of price effects whenever an electric utility firm faces DIRECT competition from another electric utility firm and (2) to observe these price-effects of competition compared with X-efficiency effects on costs."

"The results support the presence of lower prices with competition which accompany the elimination of X-efficiency, as hypothesized by Leibenstein. However, the results show that firms did not recoup all of the price concessions they granted because of competition. This suggests that firms were unable to generate sufficiently large cost economies to offset the price reductions caused by competitive pressure."
Notes: Includes bibliographical references.