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RETAILER LOCATIONS, LOCAL SUPPLY AND PRICE POLICIES

Carlos Gutierrez-Hita () and Martin Peitz

Working Papers. Serie AD from Instituto Valenciano de Investigaciones Económicas, S.A. (Ivie)

Abstract: Two retailers operate in a monopsonistic, oligopolistic environment. They have to buy from spatially dispersed suppliers and use uniform pricing downstream. We characterize prices and location in the two-stage location-then-price game under two different pricing policies in the upstream market: uniform pricing and spatial price discrimination. We analyze how local supply conditions affect equilibrium locations and profits. We show that if retailers can choose a price policy initially they commit to uniform pricing in the upstream market.

Keywords: Spatial Competition; Intermediation; Uniform Pricing (search for similar items in EconPapers)
Pages: 21 pages
Date: 2001-07
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Published by Ivie

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http://www.ivie.es/downloads/docs/wpasad/wpasad-2001-26.pdf Fisrt version / Primera version, 2001 (application/pdf)

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Persistent link: https://EconPapers.repec.org/RePEc:ivi:wpasad:2001-26

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