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Spatial Competition in Variety and Number of Stores

  • Shin-Kun Peng

    (Academia Sinica)

  • Takatoshi Tabuchi

    (Faculty of Economics, University of Tokyo)

We propose location-then-variety competition for amulti-productandmulti-store oligopoly,in which the number of firms, the number of stores and their location, and the number of varieties are endogenously determined. We show that ascompared to price-then-variety competition, location-then-variety competition with multi-stores yields a much richer set of equilibrium outcomes, such as market segmentation, interlacing, sandwich and enclosure.

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Paper provided by CIRJE, Faculty of Economics, University of Tokyo in its series CIRJE F-Series with number CIRJE-F-360.

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Length: 19 pages
Date of creation: Aug 2005
Date of revision:
Handle: RePEc:tky:fseres:2005cf360
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