Endogenous R&D spillovers and locational choice with discriminatory pricing
We present a model of spatial price discrimination where R&D spillovers are endogenous as they depend on firms' location. We establish that both the distance between locations and R&D efforts are an increasing function of the transportation cost coefficient and show that there is a continuum of cases where firms will choose an intermediate location. The managerial implications from the model are discussed using examples of marketing behavior by Internet retailers. Copyright © 2004 John Wiley & Sons, Ltd.
Year of publication: |
2004
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Authors: | Piga, Claudio ; Poyago-Theotoky, Joanna |
Published in: |
Managerial and Decision Economics. - John Wiley & Sons, Ltd., ISSN 0143-6570. - Vol. 25.2004, 3, p. 157-161
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Publisher: |
John Wiley & Sons, Ltd. |
Saved in:
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