Spatial Price Discrimination with Heterogeneous Firms
نویسندگان
چکیده
منابع مشابه
Spatial Price Discrimination with Heterogeneous Firms*
In this paper we aim to explain intuitively heterogeneous firms’ optimal location decisions in a simple spatial market. To do so, we present and solve a four-stage game of entry, location, pricing and consumption in a spatial price discrimination framework with arbitrarily many heterogeneous firms. We provide a unique equilibrium outcome without imposing restrictions on the distribution of marg...
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We show that heterogeneous firms choose different locations in respond to market integration. Specifically, decreasing trade costs lead to the gradual agglomeration of efficient firms in the larger country where they have access to a bigger pool of consumers. In contrast, high-cost firms seek protection against competition from efficient firms by locating in the smaller country. However, when t...
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ژورنال
عنوان ژورنال: The Journal of Industrial Economics
سال: 2011
ISSN: 0022-1821
DOI: 10.1111/j.1467-6451.2011.00465.x