We consider a location-then-price game where two traditional retailers compete with a location-irrelevant online retailer. We characterize the existing equilibria, and we show that in any possible equilibrium there is direct competition between the traditional retailers. Furthermore, the traditional retailers locate at neither a maximal nor minimal distance. In equilibrium, the price of the online retailer might be higher or lower than the price of the traditional retailers, depending on the relative competitiveness of the online retailer and the traditional retailers.

Colombo, S., Hou, Z., Location-price equilibria when traditional retailers compete against an online retailer, <<REVIEW OF INDUSTRIAL ORGANIZATION>>, 2021; (59): 483-502 [http://hdl.handle.net/10807/187372]

Location-price equilibria when traditional retailers compete against an online retailer

Colombo, Stefano;
2021

Abstract

We consider a location-then-price game where two traditional retailers compete with a location-irrelevant online retailer. We characterize the existing equilibria, and we show that in any possible equilibrium there is direct competition between the traditional retailers. Furthermore, the traditional retailers locate at neither a maximal nor minimal distance. In equilibrium, the price of the online retailer might be higher or lower than the price of the traditional retailers, depending on the relative competitiveness of the online retailer and the traditional retailers.
Inglese
Colombo, S., Hou, Z., Location-price equilibria when traditional retailers compete against an online retailer, <<REVIEW OF INDUSTRIAL ORGANIZATION>>, 2021; (59): 483-502 [http://hdl.handle.net/10807/187372]
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Utilizza questo identificativo per citare o creare un link a questo documento: http://hdl.handle.net/10807/187372
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