Spatial Price Discrimination with Heterogeneous Firms
研究了异质性企业在空间市场中的最优选址决策,通过一个四阶段博弈模型得到唯一均衡结果,不限制边际成本分布。
In this paper we aim to explain intuitively heterogeneous firms’ optimal location decisions in a simple spatial market. To do so, we present and solve a four‐stage game of entry, location, pricing and consumption in a spatial price discrimination framework with arbitrarily many heterogeneous firms. We provide a unique equilibrium outcome without imposing restrictions on the distribution of marginal costs across firms.