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