Spatial Duopolistic Competition with Multipurpose and Multistop Shopping

Jean-Claude Thill

The Annals of Regional Science, 1992, vol. 26, issue 3, 287-304

Abstract: This paper explores the impact of multipurpose and multistop shopping behavior on spatial competition among retail firms. The problem deals with a duopoly situation on a line segment. It is shown analytically that a unique location-price Nash equilibrium exists. In equilibrium, the locational configuration is dependent upon consumers' propensity for multipurpose shopping.

Date: 1992
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