Strategic Accessibility Competition

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:	2010
Authors:	Bacchiega, Emanuele
Other Persons:	Randon, Emanuela (contributor) ; Zirulia, Lorenzo (contributor)
Publisher:	[2010]: [S.l.] : SSRN
Subject:	Wettbewerb \| Competition \| Netzregulierung \| Access regulation \| Internationaler Wettbewerb \| International competition \| Strategisches Management \| Strategic management \| Markteintritt \| Market entry \| Wettbewerbspolitik \| Competition policy \| EU-Mitgliedschaft \| EU membership \| Wettbewerbsstrategie \| Competitive strategy

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Extent:	1 Online-Ressource (22 p)
Series:	Quaderni Working Papers DSE ; No. 695
Type of publication:	Book / Working Paper
Language:	English
Notes:	Nach Informationen von SSRN wurde die ursprüngliche Fassung des Dokuments March 8, 2010 erstellt
Other identifiers:	10.2139/ssrn.1681348 [DOI]
Classification:	L13 - Oligopoly and Other Imperfect Markets ; R42 - Government and Private Investment Analysis ; L9 - Industry Studies: Transportation and Utilities
Source:	ECONIS - Online Catalogue of the ZBW

Persistent link: https://www.econbiz.de/10013137873