There is a growing interest in using the discrete choice approach to study oligopolistic competition under product differentiation, and a prominent discrete choic model is the multinomial logit. Here we analyze various aspects of the logit in this context. We first show that the predictions of...

This paper lays out and elaborates upon the properties of an extended Chamberlinian model with applications both in Industrial Organization and Economic Geography/ Urban Economics. The framework is used to explain the impact of some major changes over the last two centuries: reductions in...

Two types of location equilibria are compared. The first one is that of a simultaneous price and location game, the second is that of a two-stage location-then-price game. It is suggested that equilibrium locations are further apart under the second and profits are higher, since firms...