Autore
Nero, Giovanni

Titolo
Spatial multiproduct duopoly pricing
Periodico
European University Institute of Badia Fiesolana (Fi). Department of Economics - Working papers
Anno: 1995 - Fascicolo: 41 - Pagina iniziale: 1 - Pagina finale: 27

This paper studies the theoretical implications of location patterns in a spatial multiproduct duopoly model. It addresses the following question: To what extent do location patterns affect firms’ pricing behaviour and market performance? I show that equilibrium prices are higher under a neighbouring location pattern. In other words, noncooperative Nash prices are higher when the organisational market structure is such that firms own strategically dependent outlets. In contrast, I demonstrate that an interlaced location pattern yields the most competitive Nash prices and the highest social welfare. Finally, I also show that from a social welfare point of view it is preferable to have three outlets rather than two.(JEL D43.L13)



Testo completo: http://hdl.handle.net/1814/566

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