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Equilibrium Locations in A Spatial Model With Sequential Entry in Real Time

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  • L. Lambertini

Abstract

I describe the entry process in a spatial market over an infinite time horizon. I show that, as long as the strategy space at the location stage is unbounded, the results derived from the single-period Stackelberg model of entry coincide with those obtained in the infinite horizon model. On the contrary, if the strategy space is bounded, then the later the follower enters, the closer to the center of the market the leader locates at the initial date.

Suggested Citation

  • L. Lambertini, 1998. "Equilibrium Locations in A Spatial Model With Sequential Entry in Real Time," Working Papers 326, Dipartimento Scienze Economiche, Universita' di Bologna.
  • Handle: RePEc:bol:bodewp:326
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    Cited by:

    1. Ebina, Takeshi & Matsushima, Noriaki & Shimizu, Daisuke, 2015. "Product differentiation and entry timing in a continuous time spatial competition model," European Journal of Operational Research, Elsevier, vol. 247(3), pages 904-913.
    2. Pierre Fleckinger & Thierry Lafay, 2003. "Horizontal differentiation and price competition with sequential entry," Working Papers hal-00243021, HAL.
    3. Takeshi Ebina & Noriaki Matsushima, 2017. "Product differentiation and entry timing in a continuous-time spatial competition model with vertical relations," ISER Discussion Paper 1009, Institute of Social and Economic Research, Osaka University.
    4. Changying Li & Jianhu Zhang, 2013. "Dynamic Games of R&D Competition in a Differentiated Duopoly," Journal of Institutional and Theoretical Economics (JITE), Mohr Siebeck, Tübingen, vol. 169(4), pages 660-679, December.
    5. Javier Elizalde & Markus Kinateder & Ignacio Rodríguez-Carreño, 2015. "Entry regulation, firm’s behaviour and social welfare," European Journal of Law and Economics, Springer, vol. 40(1), pages 13-31, August.
    6. Lambertini, Luca, 2005. "Advertising in a dynamic spatial monopoly," European Journal of Operational Research, Elsevier, vol. 166(2), pages 547-556, October.
    7. Javier Elizalde & Markus Kinateder & Ignacio Rodríguez-Carreño, 2014. "Entry Regulation in a Linear Market with Elastic Demand," Faculty Working Papers 02/14, School of Economics and Business Administration, University of Navarra.
    8. Fleckinger, Pierre & Lafay, Thierry, 2010. "Product flexibility and price competition in Hotelling's duopoly," Mathematical Social Sciences, Elsevier, vol. 60(1), pages 61-68, July.
    9. Li, Changying & Zhang, Jianhu, 2011. "Equilibrium locations in a mixed duopoly with sequential entry in real time," Economic Modelling, Elsevier, vol. 28(3), pages 1211-1218, May.
    10. Kress, Dominik & Pesch, Erwin, 2012. "Sequential competitive location on networks," European Journal of Operational Research, Elsevier, vol. 217(3), pages 483-499.
    11. Luca Lambertini, 2007. "Dynamic Spatial Monopoly with Product Development," Spatial Economic Analysis, Taylor & Francis Journals, vol. 2(2), pages 157-166.

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