Spatial competition between shopping centers ¬リニ

We study competition between two shopping centers that sell the same set of goods and are located at the extremes of a linear city, without restricting consumers tomake all their purchases at a single place. In the case of competition between a shoppingmall (set of independent single-product shops) and a department store (singlemultiproduct shop), we find that: if the number of goods is low, all consumers shop at a single place; if it is moderately high, some consumers travel to both shopping centers to buy each good where it is cheaper (a single good is cheaper at the shopping mall). The shops at the mall, taken together, obtain a lower profit than the department store. Nevertheless, two shopping malls should be expected to appear endogenously. © 2013 Elsevier B.V. All rights reserved.