Location-Price Equilibria when Traditional Retailers Compete Against an Online Retailer

B-Tier
Journal: Review of Industrial Organization
Year: 2021
Volume: 59
Issue: 3
Pages: 483-502

Authors (2)

Score contribution per author:

1.009 = (α=2.02 / 2 authors) × 1.0x B-tier

α: calibrated so average coauthorship-adjusted count equals average raw count

Abstract

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.

Technical Details

RePEc Handle
repec:kap:revind:v:59:y:2021:i:3:d:10.1007_s11151-021-09814-1
Journal Field
Industrial Organization
Author Count
2
Added to Database
2026-01-25