Product innovation and logistic optimization in a novel urban-type model

Stefano Colombo () and Luigi Filippini

No itemq1259, DISCE - Quaderni dell'Istituto di Teoria Economica e Metodi Quantitativi from Università Cattolica del Sacro Cuore, Dipartimenti e Istituti di Scienze Economiche (DISCE)

Abstract: We consider the strategic choice between product innovation and logistic optimization in a novel urban framework where consumers are distributed across the city and have different incomes depending on their location in the town. Depending on the relative efficiency of the product innovation process and the logistic innovation process as well as on the degree of spatial symmetry between the firms, both symmetric and asymmetric business strategy equilibria may arise, as well as both unique and multiple business strategy equilibria.

Keywords: Product innovation; logistic optimization; linear town (search for similar items in EconPapers)
JEL-codes: L13 R12 R41 (search for similar items in EconPapers)
Pages: 68 pages
Date: 2012-01
New Economics Papers: this item is included in nep-geo, nep-ino and nep-ure
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