A Comment on "Sequential Spatial Competition in Vertically Related Industries with Different Product Varieties"

Konstantinos Eleftheriou and Nickolas Michelacakis

MPRA Paper from University Library of Munich, Germany

Abstract: The aim of this paper is to revise and correct the results obtained in Beladi et al. [Beladi, H., Chakrabarti, A., Marjit, S., 2010. Sequential spatial competition in vertically related industries with different product varieties. Economics Letters 106, 112-114]. Specifically, we prove that following a vertical merger, the downstream firms will locate away from the social optimum in the following manner: to the direction of the un-integrated follower or to a direction determined by the wholesale price charged to the un-integrated leader.

Keywords: Product differentiation; Spatial price discrimination; Sequential competition; Merger (search for similar items in EconPapers)
JEL-codes: D43 L13 L42 R32 (search for similar items in EconPapers)
Date: 2016-09-02
New Economics Papers: this item is included in nep-com and nep-ure
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (2)

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