FONCEL, Jérôme; GUYOT, Marianne; SION, Frédéric … - Institut de Recherche Économique et Sociale (IRES), … - 2011
We study a spatial competition model which is a variant of the celebrated Hotelling (1929) framework. One of the firm is a brick-and-mortar one while the other is on-line. Both firms sell the same product except that (constant) marginal costs may differ. Consumers going to the shop around the...