On spatial competition with quadratic transport costs and one online firm

Stefano Colombo; Zemin Hou

doi:10.1007/s00168-019-00934-x

On spatial competition with quadratic transport costs and one online firm

Stefano Colombo^*, Zemin Hou

^*Autore corrispondente per questo lavoro

Risultato della ricerca: Contributo in rivista › Articolo in rivista

1 Citazioni (Scopus)

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
pagine (da-a)	241-247
Numero di pagine	7
Rivista	THE ANNALS OF REGIONAL SCIENCE
DOI	https://doi.org/10.1007/s00168-019-00934-x
Stato di pubblicazione	Pubblicato - 2019

Keywords

location-price game

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10.1007/s00168-019-00934-x

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AU - Hou, Zemin

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AB - 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.

KW - location-price game

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DO - 10.1007/s00168-019-00934-x

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On spatial competition with quadratic transport costs and one online firm

Abstract

Keywords

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