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Persistent link: https://www.econbiz.de/10004329029
The New Economic Geography literature allows detailed analysis of the factors that determine the location decisions of firms in integrated markets. However, the competitive process is modelled in a rather rudimentary way, and the empirical evidence has usually been obtained from reduced-form...
Persistent link: https://www.econbiz.de/10005022377
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available varieties among consumers can lead to the agglomeration of commercial activities. Here, the source of agglomeration is … matching. By constructing a two-region model, we show that two distribution patterns – segregation and full agglomeration – may … agglomeration – may emerge when consumers pay different amounts of transport cost. …
Persistent link: https://www.econbiz.de/10010666188
I introduce non-perfect substitutability between products into the spatial Bertrand model. I show that if goods are complements, the firms always agglomerate. If goods are substitutes, the firms agglomerate if the transportation costs are not too high. Copyright Springer-Verlag Berlin Heidelberg...
Persistent link: https://www.econbiz.de/10010681335
One of the most notable changes in the U.S. retail market over the past twenty years has been the rise of Big Box stores, retail chains characterized by physically large stores selling a wide range of consumer goods at discount prices. A growing literature has examined the impacts of Big Box...
Persistent link: https://www.econbiz.de/10011075128
We set up a three-firm model of spatial competition to analyse how a merger affects the incentives for relocation, and conversely, how the possibility of relocation affects the profitability of the merger, particularly for the non-participating firm. We also consider the cases of partial...
Persistent link: https://www.econbiz.de/10010987652
This paper applies the ‘hypothetical monopolist’ test of market definition to a retail market with products differentiated by means of location and other dimensions. The test for defining the relevant product and geographic market follows the conditions required by the European Union...
Persistent link: https://www.econbiz.de/10010987682
We show how choice of the method of measuring the party positions impacts the conclusions about equilibrium positions of parties in a spatial model. We find that for the same set of voters’ ideal points we should observe either divergence or convergence to the mean, depending on the choice of...
Persistent link: https://www.econbiz.de/10010988199
This paper develops the incentives to collude in a model with spatially separated markets and quantity setting firms. We find that increases in transportation costs stabilize the collusive agreement. We also show that, the higher the demand in both markets the less likely will collusion be...
Persistent link: https://www.econbiz.de/10010988950