Recent contributions have explored how lack of buyer mobility affects pricing. For example, Burdett, Shi, and Wright (2001) envisage a two-stage game where, once prices are set by the firms, the buyers play a static game by choosing independently which firm to visit. We incorporate imperfect...

Strategic market interaction is modelled as a two-stage game where potential entrants choose capacities and active firms compete in prices or quantities. Due to capital indivisibility, the capacity choice is made from a finite grid. In either strategic setting, the equilibrium of the game...

Strategic market interaction is here modelled as a two-stage game in which potential entrants choose capacities and active firms compete in prices. Due to capital indivisibility, the capacity choice is made from a finite grid and there are substantial economies of scale. In the simplest version...