Electronic coordination links markets at different locations that have initially been (partially) separated by transport costs. Rising competitive pressure should in turn affect incentives to differentiate products. In this paper investment decisions concerning transport cost reduction and...

This paper studies a class of two-player all-pay contests with externalities that encompass a general version of duopoly price competition. This all-pay contest formulation puts little restriction on production technologies, demand, and demand rationing. There are two types of possible...