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Spatial Competition in Variety and Number of Stores

Shin-Kun Peng () and Takatoshi Tabuchi

No 06-A002, IEAS Working Paper : academic research from Institute of Economics, Academia Sinica, Taipei, Taiwan

Abstract: We propose location-then-variety competition for a multi-product and multi-store oligopoly, in which the number of firms, the number of stores and their location, and the number of varieties are endogenously determined. We show that as compared to price-then-variety and quantity-then-variety competition, location-then-variety competition with multi-stores yields a much richer set of equilibrium outcomes, such as market segmentation, interlacing, sandwich and enclosure.

Keywords: multi-store firms; multi-product firms; variety competition; spatial preemption; natural oligopoly (search for similar items in EconPapers)
JEL-codes: D43 L13 R30 (search for similar items in EconPapers)
Pages: 23 pages
Date: 2006-02
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Related works:
Journal Article: Spatial Competition in Variety and Number of Stores (2007) Downloads
Working Paper: Spatial Competition in Variety and Number of Stores (2005) Downloads
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