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.
|Numero di pagine||7|
|Rivista||THE ANNALS OF REGIONAL SCIENCE|
|Stato di pubblicazione||Pubblicato - 2019|
- location-price game