Athens University of Economics and Business Department of Economics
نویسنده
چکیده
We set-up a linear city model with duopoly upstream and downstream. There is a transportation cost when consumers buy from a retailer and when retailers buy from a wholesaler. All location and pricing decisions are endogenous. When the wholesalers choose their locations rst, they locate closer to the center relative to the retailers, and relative to when they move simultaneously. Each wholesaler does this to strengthen the strategic position of his retailer by pulling him towards the market center resulting, in equilibrium, to a greater intensity of competition. All rms locate farther away from the market center and industry pro ts are higher under linear pricing relative to two-part tari¤s and in turn relative to vertical integration. JEL Classi cation: L13; R32
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تاریخ انتشار 2011