Location and Pricing Decisions of a MultiStore Monopoly in a Spatial Market

Abdullah Dasci and Gilbert Laporte

Journal of Regional Science, 2004, vol. 44, issue 3, 489-515

Abstract: Abstract. This article presents an analysis of location and pricing decisions of a monopolist about to open several stores in a compact geographical space. The number of stores is made endogenous by the introduction of fixed costs. A novel methodology is developed, by which the firm's location and price decisions are represented as continuous functions defined over the geographical space. This modeling artifact generates a negligible error but simplifies the solution considerably and allows the derivation of several intuitive results. Although the focus is on one‐dimensional markets, it is shown that the method can easily be adapted to two‐dimensional markets.

Date: 2004
References: Add references at CitEc
Citations: View citations in EconPapers (12)

Downloads: (external link)
https://doi.org/10.1111/j.0022-4146.2004.00346.x

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:bla:jregsc:v:44:y:2004:i:3:p:489-515

Ordering information: This journal article can be ordered from
http://www.blackwell ... bs.asp?ref=0022-4146

Access Statistics for this article

Journal of Regional Science is currently edited by Marlon G. Boarnet, Matthew Kahn and Mark D. Partridge

More articles in Journal of Regional Science from Wiley Blackwell
Bibliographic data for series maintained by Wiley Content Delivery ().