Author: Jonathan Vogel
Publisher:
ISBN:
Category :
Languages : en
Pages : 0
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Book Description
In this paper we aim to explain intuitively heterogeneous firms' optimal location decisions in a simple spatial market. To do so, we present and solve a four-stage game of entry, location, pricing and consumption in a spatial price discrimination framework with arbitrarily many heterogeneous firms. We provide a unique equilibrium outcome without imposing restrictions on the distribution of marginal costs across firms.
Author: Carlo Reggiani
Publisher:
ISBN:
Category :
Languages : en
Pages : 0
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Book Description
The spokes model allows to address nonlocalized spatial competition between firms. In a spatial context, firms can price discriminate using location-contingent pricing. Nonlocalized competition implies that neighboring effects are not relevant to firms. This paper analyzes spatial price discrimination and location choices in the spokes model. Highly asymmetric location patterns are one outcome if the number of firms is sufficiently high: in that case, one firm supplies a generally appealing product whereas others focus on a specific niche. Moreover, multiple equilibria arise for intermediate values of the number of firms. In this case, the location patterns do not always globally minimize the sum of transport costs: asymmetric configurations distribute more efficiently the cost between firms.
Author: George Norman
Publisher: Edward Elgar Publishing
ISBN:
Category : Business & Economics
Languages : en
Pages : 624
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Book Description
This volume brings together significant articles which have appeared between 1971 and 1997, analyzing the application and effects of price discrimination.
Author: Tommaso M. Valletti
Publisher:
ISBN:
Category : Business enterprises
Languages : en
Pages : 52
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Book Description
Author: Sheng-Yung Li
Publisher:
ISBN:
Category : Economic geography
Languages : en
Pages : 422
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Book Description
Author: José María Chamorro Rivas
Publisher:
ISBN:
Category :
Languages : en
Pages : 56
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Book Description
Author: George Norman
Publisher:
ISBN:
Category : Human engineering
Languages : en
Pages :
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Book Description
Author: George Norman
Publisher:
ISBN:
Category : Competition
Languages : en
Pages : 25
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Book Description
Author: Richard E. Baldwin
Publisher:
ISBN:
Category :
Languages : en
Pages :
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Book Description
A Melitz-style model of monopolistic competition with heterogeneous firms is integrated into a simple new economic geography model to show that the standard assumption of identical firms is neither necessary nor innocuous. We show that relocating to the big region is most attractive for the most productive firms; this implies interesting results for empirical work and policy analysis. A `selection effect' means standard empirical measures overestimate agglomeration economies. A `sorting effect' means that a regional policy induces the highest productivity firms to move to the core and the lowest productivity firms to the periphery. We also show that heterogeneity dampens the home market effect.
Author: Stefano Colombo
Publisher:
ISBN:
Category :
Languages : en
Pages : 0
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Book Description
We develop a model of behavior- and characteristic-based discriminatory pricing where consumers are heterogeneous both in tastes and in price sensitivity. Each firm is able to distinguish between the consumers that have bought from it and those that have bought from the rival. Furthermore, each firm learns the price sensitivity of their own consumers. We show that using this additional information may yield higher profits than uniform pricing provided that consumers are heterogeneous enough with respect to price sensitivity. We also discuss consumer surplus implications of such behavior- and characteristic-based price discrimination, and we show that the impact of price discrimination depends on both the consumer type and the level of consumers' heterogeneity.
