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Spatial Price Discrimination with Heterogeneous Firms

Author

Listed:
  • Jonathan Vogel

Abstract

In this paper we present and solve a three-stage game of entry, location, and pricing in a spatial price discrimination framework with arbitrarily many heterogeneous firms. We provide a unique characterization of all equilibria without imposing restrictions on the distribution of marginal costs.
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Suggested Citation

  • Jonathan Vogel, 2011. "Spatial Price Discrimination with Heterogeneous Firms," Journal of Industrial Economics, Wiley Blackwell, vol. 59(4), pages 661-676, December.
    • Handle: RePEc:bla:jindec:v:59:y:2011:i:4:p:661-676
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    Cited by:

    1. David H. Autor & David Dorn & Gordon H. Hanson, 2016. "The China Shock: Learning from Labor-Market Adjustment to Large Changes in Trade," Annual Review of Economics, Annual Reviews, vol. 8(1), pages 205-240, October.
    2. Kuang-Cheng Wang & Hong-Ren Din & Wen-Jung Liang, 2014. "Spatial competition and flexible manufacturing with spatially discriminatory pricing," The Annals of Regional Science, Springer;Western Regional Science Association, vol. 53(1), pages 295-314, August.
    3. McMullen, Jeffery S. & Bergman, Brian J., 2018. "The promise and problems of price subsidization in social entrepreneurship," Business Horizons, Elsevier, vol. 61(4), pages 609-621.
    4. Jacques-François Thisse & Philip Ushchev, 2018. "Monopolistic competition without apology," Chapters, in: Luis C. Corchón & Marco A. Marini (ed.), Handbook of Game Theory and Industrial Organization, Volume I, chapter 5, pages 93-136, Edward Elgar Publishing.
    5. Wen-Chung Guo & Fu-Chuan Lai, 2024. "Urban/rural spatial price discrimination with online competition," The Annals of Regional Science, Springer;Western Regional Science Association, vol. 73(1), pages 323-361, June.
    6. Drezner, Zvi & Eiselt, H.A., 2024. "Competitive location models: A review," European Journal of Operational Research, Elsevier, vol. 316(1), pages 5-18.
    7. Phillip J. Lederer, 2020. "Location-Price Competition with Delivered Pricing and Elastic Demand," Networks and Spatial Economics, Springer, vol. 20(2), pages 449-477, June.
    8. Ahmadi-Javid, Amir & Amiri, Elahe & Meskar, Mahla, 2018. "A Profit-Maximization Location-Routing-Pricing Problem: A Branch-and-Price Algorithm," European Journal of Operational Research, Elsevier, vol. 271(3), pages 866-881.
    9. Wen-Jung Liang & Kuang-Cheng Wang & Hong-Ren Din, 2014. "Spatial Competition and Flexible Manufacturing with Spatially Discriminatory Pricing," ERSA conference papers ersa14p234, European Regional Science Association.
    10. Qiang Chen & Anush Balian & Mykola Kyzym & Tetiana Salashenko & Inna Gryshova & Viktoriia Khaustova, 2021. "Electricity Markets Instability: Causes of Price Dispersion," Sustainability, MDPI, vol. 13(22), pages 1-19, November.
    11. John S. Heywood & Zerong Wang & Guangliang Ye, 2025. "A mixed duopoly input market: uniform pricing versus spatial price discrimination," Journal of Economics, Springer, vol. 144(1), pages 59-84, January.
    12. Sriya Iyer & Chander Velu & Melvyn Weeks, 2014. "Divine Competition: Religious Organisations and Service Provision in India," Cambridge Working Papers in Economics 1409, Faculty of Economics, University of Cambridge.
    13. Carlo Reggiani, 2014. "Spatial Price Discrimination in the Spokes Model," Journal of Economics & Management Strategy, Wiley Blackwell, vol. 23(3), pages 628-649, September.
    14. Jacopo Perego & Sevgi Yuksel, 2022. "Media Competition and Social Disagreement," Econometrica, Econometric Society, vol. 90(1), pages 223-265, January.
    15. Carlo Reggiani & Francesco Silvestri, 2018. "Municipal Solid Waste, Market Competition and the EU Policy," Environmental & Resource Economics, Springer;European Association of Environmental and Resource Economists, vol. 71(2), pages 457-474, October.
    16. Carlo Reggiani, "undated". "Optimal Differentiation and Spatial Competition: The Spokes Model with Product Delivery," Discussion Papers 09/13, Department of Economics, University of York.
    17. Jacques-François Thisse & Filipp Ushchev, 2018. "Monopolistic competition without apology," ULB Institutional Repository 2013/387748, ULB -- Universite Libre de Bruxelles.
    18. Raphael Auer & Philip Sauré, 2011. "Spatial Competition in Quality, Demand Induced Innovation, and Schumpeterian Growth," DEGIT Conference Papers c016_067, DEGIT, Dynamics, Economic Growth, and International Trade.
    19. Ziying Yang & Félix Muñoz-García, 2018. "Can Banning Spatial Price Discrimination Improve Social Welfare?," Journal of Industry, Competition and Trade, Springer, vol. 18(2), pages 223-243, June.
    20. Eleftheriou, Konstantinos & Michelacakis, Nickolas, 2017. "Spatial Price Discrimination and Privatization on Vertically Related Markets," MPRA Paper 76964, University Library of Munich, Germany.
    21. Eleftheriou, Konstantinos & Michelacakis, Nickolas, 2015. "A Unified Model of Spatial Price Discrimination," MPRA Paper 66557, University Library of Munich, Germany.
    22. Konstantinos Eleftheriou & Nickolas J. Michelacakis, 2020. "Location decisions and welfare under spatial price discrimination," Managerial and Decision Economics, John Wiley & Sons, Ltd., vol. 41(7), pages 1202-1210, October.

    More about this item

    JEL classification:

    • L13 - Industrial Organization - - Market Structure, Firm Strategy, and Market Performance - - - Oligopoly and Other Imperfect Markets

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