In a spatial framework firms can discriminate customers according
to their location. This paper analyzes endogenous location of discriminating
oligopolistic firms by characterizing the price-location equilibria.
Location outcomes are not necessarily socially optimal. Highly
asymmetric location patterns are devised; if the structure of the market
is interpreted as the space of characteristics, the firm occupying the
central spot can be thought as supplying a “general purpose product”.
Spatial Economics Seminar Amsterdam
- Speaker(s)
- Carlo Reggiani (University of York)
- Date
- 2011-03-28
- Location
- Amsterdam