Sequential Location among Firms with Foresight
Existing theory poorly describes the product diversity in a modern market economy largely because such theory is founded on an inadequate concept of equilibrium. Standard analysis regards decision makers as naive in their anticipations of the response of rivals to their decisions and neglects the substantial costs of relocating in the product characteristic space. In this paper, we construct an equilibrium model of firms in which each firm locates in sequence with correct expectations of the way its decisions influence the decisions of firms yet to locate. The nature of the equilibrium is explored in a series of familiar examples taken from the literature.
If you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.
As the access to this document is restricted, you may want to look for a different version under "Related research" (further below) or search for a different version of it.
Volume (Year): 8 (1977)
Issue (Month): 2 (Autumn)
|Contact details of provider:|| Web page: http://www.rje.org|
|Order Information:||Web: https://editorialexpress.com/cgi-bin/rje_online.cgi|
When requesting a correction, please mention this item's handle: RePEc:rje:bellje:v:8:y:1977:i:autumn:p:378-393. See general information about how to correct material in RePEc.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: ()
If references are entirely missing, you can add them using this form.