Location and Pricing Decisions of a MultiStore Monopoly in a Spatial Market
研究了垄断者在紧凑地理空间开设多家商店时的选址与定价决策，通过引入固定成本使商店数量内生，并开发了一种将选址和定价表示为连续函数的新方法，简化了求解过程并得出直观结论。
Abstract. This article presents an analysis of location and pricing decisions of a monopolist about to open several stores in a compact geographical space. The number of stores is made endogenous by the introduction of fixed costs. A novel methodology is developed, by which the firm's location and price decisions are represented as continuous functions defined over the geographical space. This modeling artifact generates a negligible error but simplifies the solution considerably and allows the derivation of several intuitive results. Although the focus is on one‐dimensional markets, it is shown that the method can easily be adapted to two‐dimensional markets.