Spatial Price Equilibrium with Product Variety, Chain Stores, and Integer Pricing: An Empirical Analysis

Charles Lindsey (), Balder von Hohenbalken and Douglas West

Canadian Journal of Economics, 1991, vol. 24, issue 4, 900-922

Abstract: A spatial model that incorporates store locations and city topographic features is developed for the Edmonton, Alberta, video-cassette-rental market. Bertrand-Nash equilibrium prices are computed using a grid search algorithm that maximizes goodness-of-fit against observed prices. The fit is improved by taking into account differences between stores in product variety, the tendency of chains to set a common price for all member stores, and the tendency of chains to set whole dollar prices. Implications for further empirical research in spatial pricing are drawn.

Date: 1991
References: Add references at CitEc
Citations: View citations in EconPapers (1)

Downloads: (external link)
http://links.jstor.org/sici?sici=0008-4085%2819911 ... PEWPV%3E2.0.CO%3B2-A (text/html)
only available to JSTOR subscribers

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:cje:issued:v:24:y:1991:i:4:p:900-922

Ordering information: This journal article can be ordered from
https://www.economic ... ionen/membership.php

Access Statistics for this article

Canadian Journal of Economics is currently edited by Zhiqi Chen

More articles in Canadian Journal of Economics from Canadian Economics Association Canadian Economics Association Prof. Werrner Antweiler, Treasurer UBC Sauder School of Business 2053 Main Mall Vancouver, BC, V6T 1Z2. Contact information at EDIRC.
Bibliographic data for series maintained by Prof. Werner Antweiler ().