Spatial Price Discrimination in the Spokes Model

Spatial Price Discrimination in the Spokes Model
Author: Carlo Reggiani
Publisher:
Total Pages: 0
Release: 2014
Genre:
ISBN:

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.

Spatial Economics Volume I

Spatial Economics Volume I
Author: Stefano Colombo
Publisher: Springer Nature
Total Pages: 346
Release: 2020-09-23
Genre: Business & Economics
ISBN: 3030400980

Space is a crucial variable in any economic activity. Spatial Economics is the branch of economics that explicitly aims to incorporate the space dimension in the analysis of economic phenomena. From its beginning in the last century, Spatial Economics has contributed to the understanding of the economy by developing plenty of theoretical models as well as econometric techniques having the “space” as a core dimension of the analysis. This edited volume addresses the complex issue of Spatial Economics from a theoretical point of view. This volume is part of a more complex project including another edited volume (Spatial Economics Volume II: Applications) collecting original papers which address Spatial Economics from an applied perspective.

Spatial Price Discrimination with Heterogeneous Firms

Spatial Price Discrimination with Heterogeneous Firms
Author: Jonathan Vogel
Publisher:
Total Pages: 0
Release: 2009
Genre: Price discrimination
ISBN:

In this paper we present and solve a three-stage game of entry, location, and pricing in a spatial price discrimination framework with arbitrarily many heterogeneous firms. We provide a unique characterization of all pure undominated strategy SPNE without imposing restrictions on the distribution of marginal costs or the allocation of transportation costs between firms and consumers.