Spatial Price Competition: A Network Approach
نویسندگان
چکیده
منابع مشابه
Spatial competition and price formation
We look at price formation in a retail setting, that is, companies set prices, and consumers either accept prices or go someplace else. In contrast to most other models in this context, we use a two-dimensional spatial structure for information transmission, that is, consumers can only learn from nearest neighbors. Many aspects of this can be understood in terms of generalized evolutionary dyna...
متن کاملSpatial Competition and the Price of College
This article provides the first evidence that universities compete directly on price, and that the market for students depends on the proximity of competitors. Exploiting detailed data from private U.S. universities, price competition is tested by introducing geographic proximity into a spatial-autoregressive tuition model. Standard spatial models show that list and net tuition are inversely re...
متن کاملPrice competition in a differentiated products duopoly under network effects
We examine price competition under product-specific network effects, in a duopoly where the products are differentiated horizontally and vertically. When consumers’ expectations are not affected by prices, firms may share the market equally, or one firm (possibly even the low-quality one) may capture the entire market. When product qualities are different, we may also have interior asymmetric e...
متن کاملThe price of imperfect competition for a spanning network
a r t i c l e i n f o a b s t r a c t JEL classification: C72 C79 D40 D43 D44 Keywords: Algorithmic mechanism design Worst case scenario equilibrium analysis Frugality Minimum cost spanning tree problem Price of imperfect competition A buyer procures a network to span a given set of nodes; each seller bids to supply certain edges, then the buyer purchases a minimal cost spanning tree. An effici...
متن کاملPrice Floors and Competition
A potential source of instability of many economic models is that agents have little incentive to stick with the equilibrium. We show experimentally that this may matter with price competition. The control variable is a price floor, which increases the cost of deviating from equilibrium. Theoretically the floor allows competitors to obtain higher profits, as low prices are excluded. However, be...
متن کاملذخیره در منابع من
با ذخیره ی این منبع در منابع من، دسترسی به آن را برای استفاده های بعدی آسان تر کنید
ژورنال
عنوان ژورنال: Geographical Analysis
سال: 2010
ISSN: 0016-7363
DOI: 10.1111/j.1538-4632.1991.tb00223.x