Multi-Store Competition: Market Segmentation or Interlacing?

Maarten C.W. Janssen (), Vladimir Karamychev and Peran van Reeven
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Maarten C.W. Janssen: Dept of Micro-Economics, Erasmus University Rotterdam

No 03-033/1, Tinbergen Institute Discussion Papers from Tinbergen Institute

Abstract: This discussion paper led to a publication in the Regional Science and Urban Economics (2005). Vol. 35(6), pages 700-714.

This paper develops a model for multi-store competition between firms. Using thefact that different firms have different outlets and produce horizontally differentiated goods, we obtain a pure strategy equilibrium where firms choose a different location for each outlet and firms' locations are interlaced. Moreover, generically, the subgame perfect equilibrium isunique and when the firms have an equal number of outlets, prices are independent of the number of outlets.

Keywords: multi-store competition; hotelling; interlacing (search for similar items in EconPapers)
JEL-codes: D10 I18 Z13 (search for similar items in EconPapers)
Date: 2003-04-10
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (6)

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Journal Article: Multi-store competition: Market segmentation or interlacing? (2005)
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Persistent link: https://EconPapers.repec.org/RePEc:tin:wpaper:20030033

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