Spatial Discrimination, Product Substitutability and Welfare
Abstract
The paper examines a quantity-location duopoly game in a spatial discrimination model in which the delivered goods are assumed to be imperfect substitutes or complements. By extending the range of the unit transportation cost analyzed in the existing literature, it is shown that a dispersed equilibrium arises in which the choice of the optimal locations is affected by the degree of product substitutability. The interaction between the latter and the size of the transportation cost is also discussed in order to verify its welfare implications. In particular, it is shown that in this spatial framework imperfect substitutability may increase welfare. Codice Scopus: 2-s2.0-79958859470
Autore Pugliese
Tutti gli autori
-
Scrimitore M.
Titolo volume/Rivista
BULLETIN OF ECONOMIC RESEARCH
Anno di pubblicazione
2011
ISSN
0307-3378
ISBN
Non Disponibile
Numero di citazioni Wos
1
Ultimo Aggiornamento Citazioni
25/04/2018
Numero di citazioni Scopus
1
Ultimo Aggiornamento Citazioni
24/04/2018
Settori ERC
Non Disponibile
Codici ASJC
Non Disponibile
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