Endogenous R&D Spillovers and Locational Choice with discriminatory pricing

Claudio Piga and Joanna Poyago-Theotoky

No 311, CRIEFF Discussion Papers from Centre for Research into Industry, Enterprise, Finance and the Firm

Abstract: We present a model of spatial price discrimination where R&D spillovers are endogenous as they depend on firms' location. We establish that both the distance between locations and R&D efforts are increasing functions of the transportation cost coefficient and show that there is a continuum of cases where firms will chose an intermediate location. The managerial implications from the model are discussed using examples of marketing behaviour by Internet retailers.

Keywords: Endogenous spillovers; Quality-enhancing R&D; Location, Spatial price discrimination. (search for similar items in EconPapers)
JEL-codes: D43 L13 O30 R10 (search for similar items in EconPapers)
Date: 2003-11
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Journal Article: Endogenous R&D spillovers and locational choice with discriminatory pricing (2004)
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