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[eng] Spatial competition and distortuns of localization. Under incomplete information. . We study a model of spatial duopoly competition with sequential entry on a segment in the choice of locations (stage 1 of the game) and then simultaneous competition in delivery prices (stage 2). The second...
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We show that, under asymmetric information about costs, limit location strategies, that is distortions in pre-entry locations created by the entrant's inference about the incumbent's cost advantage which prevent entry, emerge not only as the result of the incumbent's cost advantage but also as...
Persistent link: https://www.econbiz.de/10005100725
We investigate the behavior of a polluting monopolist whose production causes a global damage affecting consumers and non-consumers alike while consumption causes a specific damage affecting consumers only. The monopolist anticipates strategically how her decisions on product variant, price and...
Persistent link: https://www.econbiz.de/10005100774
We show that information asymmetry may not cause any distortion in product differentiation. This contrasts with the main result of the literature on signaling which stresses that information asymmetry has a non negligible impact on strategic behavior. A thorough analysis of the...
Persistent link: https://www.econbiz.de/10005100924
We consider a simple model of incomplete information in location theory. Two firms compete in a two stage framework: a sequential location stage and a price competition stage. Firm 1 knows both its own constant marginal cost technology and that of Firm 2, whereas the latter has incomplete...
Persistent link: https://www.econbiz.de/10005100943
How does asymmetric information (regarding production costs) in a spatial market alter the behavior of the incumbent firm which can credibly commit to her location choice? Although entry deterrence is irrelevant here, our analysis shows that entry blockading behavior emerges not only as the...
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