Abstract
Guo and Lai (2014) argue that, under quadratic transport costs, when two offline firms compete with one online firm, the two offline firms locate in such a way that they occupy unconnected regions in the market. However, we offer a counterexample to show that their provided condition is not sufficient to support existence of subgame perfect equilibria, because location deviations to different market structures are not taken into account.
Lingua originale | English |
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pagine (da-a) | 241-247 |
Numero di pagine | 7 |
Rivista | THE ANNALS OF REGIONAL SCIENCE |
DOI | |
Stato di pubblicazione | Pubblicato - 2019 |
Keywords
- location-price game