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We combine spatial and monopolistic competition to study market interactions between downtown retailers and an outlying shopping mall. Consumers shop at either marketplace or at both, and buy each variety in volume. The market solution stems from the interplay between the market expansion...
Persistent link: https://www.econbiz.de/10011400170
In the early 70s, the retail landscape of the Lisbon Metropolitan Area (LMA) was mostly confined to the Lisbon downtown. However, the retail landscape is changing at a rapid pace. In the mid-80s, two focus of retail competition (Amoreiras Shopping Center and Roma Avenue) appeared out-of-city...
Persistent link: https://www.econbiz.de/10011400164
We provide a theory of how RPM facilitate upstream cartels absent any information asymmetries using a model with manufacturer and retailer competition. Because retailers have an effective outside option to each manufacturer's contract, the manufacturers can only ensure contract acceptance by...
Persistent link: https://www.econbiz.de/10012287933
We provide a novel explanation for why manufacturers want to enforce a minimum resale price (min RPM) on retailers. A manufacturer sells her good via a multi-product retailer to final consumers by charging a linear wholesale price. The manufacturer then maximizes her profit through min RPM...
Persistent link: https://www.econbiz.de/10012623084