Dynamic Spatial Competition Between Multi‐Store Retailers
提出了一个多门店零售商在空间上竞争的动态寡头模型，分析门店网络布局中的自相蚕食、密度经济、竞争和需求溢出等因素，并开发了估计模型参数的算法。
We propose a dynamic model of an oligopoly industry characterized by spatial competition between multi‐store retailers. Firms compete in prices and decide where to open or close stores depending on demand and cost conditions, the number of competitors at different locations, and on location‐specific private‐information shocks. The model distinguishes multiple forces in the spatial configuration of store networks, such as cannibalization of revenue between stores of the same retail chain, economies of density, competition, consumer transportation costs, or positive demand spillovers from other stores. We develop an algorithm to approximate a Markov Perfect Equilibrium in our model, and propose a procedure for the estimation of the parameters of the model using panel data on number of stores, prices, and quantities at multiple geographic locations within a city. We also present a numerical example to illustrate the model and algorithm.