Spatial Price Discrimination with Heterogeneous Firms
26 Pages Posted: 26 May 2009 Last revised: 5 Dec 2022
Date Written: May 2009
Abstract
In this paper we present and solve a three-stage game of entry, location, and pricing in a spatial price discrimination framework with arbitrarily many heterogeneous firms. We provide a unique characterization of all equilibria without imposing restrictions on the distribution of marginal costs.
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