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Software for the Computation of Markov-Perfect Equilibria in a Dynamic Game of Store Location by Multi-Store Firms

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Author Info

  • Aguirregabiria, Victor
  • Vicentini, Gustavo

Abstract

This document is a supplement of the paper "Dynamic Spatial Competition Between Multi-Store Firms" by Aguirregabiria and Vicentini (2007). It describes in detail the library of programs and procedures, in GAUSS language, that is used in that paper. The program computes an equilibrium of a dynamic game of store location and spatial competition by multi-store firms. The equilibrium of the game is a space-time stochastic process for the network of stores of each firm as well as for prices, markups, profits and consumer welfare at every location in the geographic market. We illustrate the use of the program with an example.

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File URL: http://mpra.ub.uni-muenchen.de/17035/
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Bibliographic Info

Paper provided by University Library of Munich, Germany in its series MPRA Paper with number 17035.

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Date of creation: May 2007
Date of revision:
Handle: RePEc:pra:mprapa:17035

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Related research

Keywords: Dynamic Spatial competition; Store location; Market dynamics; Sunk costs;

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Cited by:
  1. Victor Aguirregabiria & Gustavo Vicentini, 2006. "Dynamic Spatial Competition Between Multi-Store Firms," Working Papers tecipa-253, University of Toronto, Department of Economics.

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