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Optimal Differentiation and Spatial Competition: The Spokes Model with Product Delivery

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  • Carlo Reggiani

Abstract

The spokes model is a recent framework to study n-firms spatial competition. In a spatial framework firms delivering their product can price discriminate with respect to consumers’ location. Conditions for the existence of a price-location equilibrium of the spokes model with delivered product are established in both the case where there are as many firms as spokes and in the case not all spokes are occupied. The equilibrium outcome may be interpreted as one firm supplying a "general purpose product" while others focusing on their "niche".

Suggested Citation

  • Carlo Reggiani, "undated". "Optimal Differentiation and Spatial Competition: The Spokes Model with Product Delivery," Discussion Papers 09/13, Department of Economics, University of York.
    • Handle: RePEc:yor:yorken:09/13
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    Cited by:

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    2. Oksana Loginova, 2019. "Price Competition Online: Platforms vs. Branded Websites," Working Papers 1906, Department of Economics, University of Missouri.

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    More about this item

    Keywords

    spokes model; discrimination; optimal location;
    All these keywords.

    JEL classification:

    • D43 - Microeconomics - - Market Structure, Pricing, and Design - - - Oligopoly and Other Forms of Market Imperfection
    • L11 - Industrial Organization - - Market Structure, Firm Strategy, and Market Performance - - - Production, Pricing, and Market Structure; Size Distribution of Firms
    • L13 - Industrial Organization - - Market Structure, Firm Strategy, and Market Performance - - - Oligopoly and Other Imperfect Markets

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