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This paper explores the impact of multipurpose and multistop shopping behavior on spatial competition among retail firms. The problem deals with a duopoly situation on a line segment. It is shown analytically that a unique location-price Nash equilibrium exists. In equilibrium, the locational...
Persistent link: https://www.econbiz.de/10005391294
The paper provides a general framework for the analysis of noncooperative competition between multi-branch networks when consumers have heterogeneous preferences. This framework allows for ill-studied conditions, such as branch loyalty and economies of scope, to be explored in terms of their...
Persistent link: https://www.econbiz.de/10005759998