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On the Existence and uniqueness of Price Equilibrium with Multi-Store Firms

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  • Hammoudi Abdelhakim

    ()
    (INRA-ALISS)

  • Giraud-héraud Eric

    ()
    (*INRA-ALISS and Ecole Polytechnique, Laboratoire d''Econométrie, France)

Abstract

The paper gives a proof of the existence and the uniqueness of price equilibrium in a multi-product, multi-firm competition framework. It illustrates how the price levels depends on the inter-brand portfolio substitution and on the intra-brand portfolio substitution

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File URL: http://www.accessecon.com/Pubs/EB/2009/Volume29/EB-09-V29-I2-P37.pdf
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Bibliographic Info

Article provided by AccessEcon in its journal Economics Bulletin.

Volume (Year): 29 (2009)
Issue (Month): 2 ()
Pages: 873-882

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Handle: RePEc:ebl:ecbull:eb-08c00015

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  1. Maarten C.W. Janssen & Vladimir A. Karamychev & Peran van Reeven, 2003. "Multi-Store Competition: Market Segmentation or Interlacing?," Tinbergen Institute Discussion Papers 03-033/1, Tinbergen Institute.
  2. Klemperer, Paul, 1992. "Equilibrium Product Lines: Competing Head-to-Head May Be Less Competitive," American Economic Review, American Economic Association, vol. 82(4), pages 740-55, September.
  3. Steven C. Salop, 1979. "Monopolistic Competition with Outside Goods," Bell Journal of Economics, The RAND Corporation, vol. 10(1), pages 141-156, Spring.
  4. Pal, Debashis & Sarkar, Jyotirmoy, 2002. "Spatial competition among multi-store firms," International Journal of Industrial Organization, Elsevier, vol. 20(2), pages 163-190, February.
  5. Barron, John M & Taylor, Beck A & Umbeck, John R, 2000. "A Theory of Quality-Related Differences in Retail Margins: Why There Is a "Premium" on Premium Gasoline," Economic Inquiry, Western Economic Association International, vol. 38(4), pages 550-69, October.
  6. Janet S. Netz & Beck A. Taylor, 2002. "Maximum Or Minimum Differentiation? Location Patterns Of Retail Outlets," The Review of Economics and Statistics, MIT Press, vol. 84(1), pages 162-175, February.
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