Optimal Differentiation and Spatial Competition: The Spokes Model with Product Delivery

Carlo Reggiani

Discussion Papers from Department of Economics, University of York

Abstract: The spokes model is a recent framework to study n-firms spatial competition. In a spatial framework firms delivering their product can price discriminate with respect to consumers’ location. Conditions for the existence of a price-location equilibrium of the spokes model with delivered product are established in both the case where there are as many firms as spokes and in the case not all spokes are occupied. The equilibrium outcome may be interpreted as one firm supplying a "general purpose product" while others focusing on their "niche".

Keywords: spokes model; discrimination; optimal location (search for similar items in EconPapers)
JEL-codes: D43 L11 L13 (search for similar items in EconPapers)
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Related works:
Working Paper: Spatial price discrimination in the spokes model (2012)
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