Demand Estimation: A Crucial Tool for Understanding Consumer Behaviour

Briefs

The essence of competition analysis revolves around the substitutability of products. Consumers make purchasing decisions based on how interchangeable these products are. When companies increase their prices, consumers tend to seek alternatives. Such price hikes can lead consumers to switch from one substitute to another. If firms have control over these substitutes, it can result in price increases across all alternatives, raising concerns about competition.