We analyse the effects of competition on quality provision in spatial markets where providers compete on both price and quality and where travel distance is a key factor for consumers choice of provider. Examples of such markets include health care, long-term care, child care and education....

We consider a therapeutic market with potentially three pharmaceutical firms. Two of the firms offer horizontally differentiated brand-name drugs. One of the brand-name drugs is a new treatment under patent protection that will be introduced if the profits are sufficient to cover the entry...