Optimal Differentiation and Spatial Competition: The Spokes Model with Product Delivery
AbstractThe 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".
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Bibliographic InfoPaper provided by Department of Economics, University of York in its series Discussion Papers with number 09/13.
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spokes model; discrimination; optimal location;
Other versions of this item:
- D43 - Microeconomics - - Market Structure and Pricing - - - 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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