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Spatial Duopolistic Competition with Multipurpose and Multistop Shopping

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  • Thill, Jean-Claude

Abstract

This paper explores the impact of multipurpose and multistop shopping behavior on spatial competition among retail firms. The problem deals with a duopoly situation on a line segment. It is shown analytically that a unique location-price Nash equilibrium exists. In equilibrium, the locational configuration is dependent upon consumers' propensity for multipurpose shopping.

Suggested Citation

  • Thill, Jean-Claude, 1992. "Spatial Duopolistic Competition with Multipurpose and Multistop Shopping," The Annals of Regional Science, Springer;Western Regional Science Association, vol. 26(3), pages 287-304, September.
    • Handle: RePEc:spr:anresc:v:26:y:1992:i:3:p:287-304
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    Cited by:

    1. Brandão, António & Correia-da-Silva, João & Pinho, Joana, 2014. "Spatial competition between shopping centers," Journal of Mathematical Economics, Elsevier, vol. 50(C), pages 234-250.
    2. Lahmandi-Ayed, Rim, 2010. "Spatial differentiation, divisible consumption and the pro-competitive effect of income," Journal of Mathematical Economics, Elsevier, vol. 46(1), pages 71-85, January.
    3. Brooks, Charles M. & Kaufmann, Patrick J. & Lichtenstein, Donald R., 2008. "Trip chaining behavior in multi-destination shopping trips: A field experiment and laboratory replication," Journal of Retailing, Elsevier, vol. 84(1), pages 29-38.
    4. Marianov, Vladimir & Eiselt, H.A. & Lüer-Villagra, Armin, 2018. "Effects of multipurpose shopping trips on retail store location in a duopoly," European Journal of Operational Research, Elsevier, vol. 269(2), pages 782-792.
    5. Pramono, Ari & Oppewal, Harmen, 2021. "Where to refuel: Modeling on-the-way choice of convenience outlet," Journal of Retailing and Consumer Services, Elsevier, vol. 61(C).
    6. Nilsson, Helena, 2020. "IKEA entry - Effects on firms in retail and hospitality," HFI Working Papers 11, Institute of Retail Economics (Handelns Forskningsinstitut).
    7. Wieland, Thomas, 2014. "Räumliches Einkaufsverhalten und Standortpolitik im Einzelhandel unter Berücksichtigung von Agglomerationseffekten: Theoretische Erklärungsansätze, modellanalytische Zugänge und eine empirisch-ökonome," MPRA Paper 77163, University Library of Munich, Germany.
    8. Méndez-Vogel, Gonzalo & Marianov, Vladimir & Lüer-Villagra, Armin & Eiselt, H.A., 2023. "Store location with multipurpose shopping trips and a new random utility customers’ choice model," European Journal of Operational Research, Elsevier, vol. 305(2), pages 708-721.

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