Working Paper: NBER ID: w14978
Authors: Jonathan Vogel
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.
Keywords: No keywords provided
JEL Codes: L13
Edges that are evidenced by causal inference methods are in orange, and the rest are in light blue.
| Cause | Effect |
|---|---|
| Firm productivity (marginal cost) (D21) | Firm isolation (distance from competitors) (L10) |
| Firm isolation (distance from competitors) (L10) | Market share (D33) |
| Market share (D33) | Profit (L21) |
| Firm productivity (marginal cost) (D21) | Market share (D33) |
| Firm productivity (marginal cost) (D21) | Profit (L21) |
| Firm productivity (marginal cost) (D21) | Location choices (R30) |
| Location choices (R30) | Firm isolation (distance from competitors) (L10) |
| Location choices (R30) | Pricing strategies (D49) |
| Pricing strategies (D49) | Market share (D33) |
| Pricing strategies (D49) | Profit (L21) |