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This article focuses on the location decision of firms when competing in a spatial Cournot duopoly. Our original contribution is that firms are dependent on a natural resource input, which is assumed to be located in one of the extremes of the market, to be able to produce the output sought by...
Persistent link: https://www.econbiz.de/10011517117
The paper studies indirect network effects in a market composed by two incompatible intermediaries that choose price (short-term issue) in addition to location (long-term issue). The paper first shows that (i) when the network externality is sufficiently weak, only maximum differentiation...
Persistent link: https://www.econbiz.de/10010481985
Persistent link: https://www.econbiz.de/10015178406
In this article we propose an innovative way of delineating geographical markets based on easily accessible data. We apply this concept for the day care industry and investigate providers' location choices relative to local market characteristics to evaluate the widespread presumption that local...
Persistent link: https://www.econbiz.de/10011918600
A new direction of research in Competitive Location theory incorporates theories of Consumer Choice Behavior in its models. Following this direction, this paper studies the importance of consumer behavior with respect to distance or transportation costs in the optimality of locations obtained by...
Persistent link: https://www.econbiz.de/10014213614
This paper considers the effect of the internalization of the costs of point source pollution and congestion by Cournot duopolists in a linear city. The central agglomeration of Cournot duopolists in a linear city is well known. However, this paper shows that even under the condition in which...
Persistent link: https://www.econbiz.de/10014076891
In this paper we consider a location and pricing model for a retail firm that wants to enter a spatial market where a competitor firm is already operating as a monopoly with several outlets. The entering firm seeks to determine the optimal uniform mill price and its servers' locations that...
Persistent link: https://www.econbiz.de/10014071625
Most facility location decision models ignore the fact that for a facility to survive it needs a minimum demand level to cover costs. In this paper we present a decision model for a firm that wishes to enter a spatial market where there are several competitors already located. This market is...
Persistent link: https://www.econbiz.de/10014196008
The aim of this paper is to revise and correct the results obtained in Beladi et al. [Beladi, H., Chakrabarti, A., Marjit, S., 2010. Cross-border merger, vertical structure, and spatial competition. Economics Letters 109, 112-114]. Specifically, we prove that the Nash equilibrium locations of...
Persistent link: https://www.econbiz.de/10012982557
Persistent link: https://www.econbiz.de/10010191360