Sequential Location among Firms with Foresight
AbstractExisting theory poorly describes the product diversity in a modern market economy largely because such theory is founded on an inadequate concept of equilibrium. Standard analysis regards decision makers as naive in their anticipations of the response of rivals to their decisions and neglects the substantial costs of relocating in the product characteristic space. In this paper, we construct an equilibrium model of firms in which each firm locates in sequence with correct expectations of the way its decisions influence the decisions of firms yet to locate. The nature of the equilibrium is explored in a series of familiar examples taken from the literature.
Download InfoIf you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.
Bibliographic InfoArticle provided by The RAND Corporation in its journal Bell Journal of Economics.
Volume (Year): 8 (1977)
Issue (Month): 2 (Autumn)
Contact details of provider:
Web page: http://www.rje.org
You can help add them by filling out this form.
CitEc Project, subscribe to its RSS feed for this item.
- John Heywood & Guangliang Ye, 2013. "Sequential entry and merger in spatial price discrimination," The Annals of Regional Science, Springer, vol. 50(3), pages 841-859, June.
- Joel Waldfogel, 2006. "The Median Voter and the Median Consumer: Local Private Goods and Residential Sorting," NBER Working Papers 11972, National Bureau of Economic Research, Inc.
- Burkey, Mark L., 2010.
"Geographic access and demand in the market for alcohol,"
36913, University Library of Munich, Germany.
- Burkey, Mark L., 2010. "Geographic Access and Demand in the Market for Alcohol," The Review of Regional Studies, Southern Regional Science Association, vol. 40(2), pages 159-79.
- Oksana Loginova & X. Hnery Wang, 2013. "Customization in an Endogenous-Timing Game with Vertical Differentiation," Working Papers 1304, Department of Economics, University of Missouri.
- Marc Dudey, 1988. "Competition by choice," International Finance Discussion Papers 327, Board of Governors of the Federal Reserve System (U.S.).
- Tabuchi, Takatoshi & Thisse, Jacques-Francois, 1995.
"Asymmetric equilibria in spatial competition,"
International Journal of Industrial Organization,
Elsevier, vol. 13(2), pages 213-227.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: ().
If references are entirely missing, you can add them using this form.