Strategic accessibility competition

Emanuele Bacchiega, Emanuela Randon, Lorenzo Zirulia

We analyze the effect of competition in market-accessibility enhancement among quality-differentiated firms. Firms are located in regions with different ex-ante transport costs to reach the final market. We characterize the equilibrium of the two-stage game in which firms first invest to improve market accessibility and then compete in prices. Efforts in accessibility improvement crucially depend on the interplay between the willingness to pay for the quality premium of the median consumer and the ex-ante difference in accessibility between regions. From the social standpoint, all the accessibility investment should be carried out by the high-quality firm. Finally quality choice is endogenized.

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Year of publication:	February 26, 2010
Authors:	Bacchiega, Emanuele ; Randon, Emanuela ; Zirulia, Lorenzo
Publisher:	Bologna : Dipartimento di Scienze economiche DSE
Subject:	Strategic Accessibility Competition \| Wettbewerb \| Competition \| Internationaler Wettbewerb \| International competition \| Wettbewerbsstrategie \| Competitive strategy \| Netzregulierung \| Access regulation \| Markteintritt \| Market entry \| Strategisches Management \| Strategic management \| Theorie \| Theory \| EU-Mitgliedschaft \| EU membership

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Extent:	1 Online-Ressource (circa 22 Seiten) Illustrationen
Series:	Quaderni - working paper DSE / Alma Mater Studiorum - Università di Bologna, Department of Economics. - Bologna : [Verlag nicht ermittelbar], ISSN 2282-6483, ZDB-ID 2125055-8. - Vol. no 696
Type of publication:	Book / Working Paper
Type of publication (narrower categories):	Graue Literatur ; Non-commercial literature ; Arbeitspapier ; Working Paper
Language:	English
Other identifiers:	10.6092/unibo/amsacta/4545 [DOI] hdl:10419/159537 [Handle]
Classification:	L13 - Oligopoly and Other Imperfect Markets ; R42 - Government and Private Investment Analysis ; L90 - Industry Studies: Transportation and Utilities. General
Source:	ECONIS - Online Catalogue of the ZBW

Persistent link: https://www.econbiz.de/10011739839