Brekke, Kurt R.; Nuscheler, Robert; Straume, Odd Rune - Institutt for Økonomi, Universitetet i Bergen - 2002
In a model of spatial competition, we analyse the equilibrium outcomes in markets where the product price is exogenous. Using an extended version of the Hotelling model, we assume that firms choose their locations and the quality of the product they supply. We derive the optimal price set by a...