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On the existence and uniqueness of price equilibrium with multi-store firms

Author

Listed:
  • Eric E. Giraud-Heraud

    (ALISS - Alimentation et sciences sociales - INRA - Institut National de la Recherche Agronomique)

  • Abdelhakim Hammoudi

    (ALISS - Alimentation et sciences sociales - INRA - Institut National de la Recherche Agronomique)

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.

Suggested Citation

  • Eric E. Giraud-Heraud & Abdelhakim Hammoudi, 2009. "On the existence and uniqueness of price equilibrium with multi-store firms," Post-Print hal-02659530, HAL.
    • Handle: RePEc:hal:journl:hal-02659530
    Note: View the original document on HAL open archive server: https://hal.inrae.fr/hal-02659530
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    File URL: https://hal.inrae.fr/hal-02659530/document
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    References listed on IDEAS

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    1. Janssen, Maarten C.W. & Karamychev, Vladimir A. & van Reeven, Peran, 2005. "Multi-store competition: Market segmentation or interlacing?," Regional Science and Urban Economics, Elsevier, vol. 35(6), pages 700-714, November.
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    3. Klemperer, Paul, 1992. "Equilibrium Product Lines: Competing Head-to-Head May Be Less Competitive," American Economic Review, American Economic Association, vol. 82(4), pages 740-755, September.
    4. 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 550-569, October.
    5. Pal, Debashis & Sarkar, Jyotirmoy, 2002. "Spatial competition among multi-store firms," International Journal of Industrial Organization, Elsevier, vol. 20(2), pages 163-190, February.
    6. Levy, David T & Reitzes, James D, 1992. "Anticompetitive Effects of Mergers in Markets with Localized Competition," The Journal of Law, Economics, and Organization, Oxford University Press, vol. 8(2), pages 427-440, April.
    7. Steven C. Salop, 1979. "Monopolistic Competition with Outside Goods," Bell Journal of Economics, The RAND Corporation, vol. 10(1), pages 141-156, Spring.
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