Spatial competition with capacity constraints and subcontracting

Arbeitspapier

We characterize mixed-strategy equilibria when capacity constrained suppliers can charge location-based prices to different customers. We establish an equilibrium with prices that weakly increase in the costs to supply a customer. Despite prices above costs and excess capacities, each supplier exclusively serves its home market in equilibrium. Competition yields volatile market shares and an inefficient allocation of customers to firms. Even ex-post cross-supplies may restore efficiency only partly. We use our findings to discuss recent competition policy cases and provide hints for a more refined coordinated-effects analysis.

Angaben zum Objekt

• Sprache: Englisch

Verweise und Beziehungen

• Erschienen in: Series: Working Paper ; No. 1813

Klassifikation und Themen

• Klassifikation: Wirtschaft ; Production, Pricing, and Market Structure; Size Distribution of Firms ; Monopolization; Horizontal Anticompetitive Practices ; Metals and Metal Products; Cement; Glass; Ceramics
• Thema: Bertrand-Edgeworth ; capacity constraints ; inefficient competition ; spatial price discrimination ; subcontracting ; transport costs

Beteiligte, Orts- und Zeitangaben

• Ereignis: Geistige Schöpfung
• (wer): Hunold, Matthias ; Muthers, Johannes
• Ereignis: Veröffentlichung
• (wer): Johannes Kepler University of Linz, Department of Economics
• (wo): Linz
• (wann): 2018

Weitere Informationen

• Handle: http://hdl.handle.net/10419/183272
• Letzte Aktualisierung: 10.03.2025, 11:45 MEZ