Arbeitspapier

Electronic coordination in oligopolistic markets: Impact on transport costs and product differentiation

Electronic coordination links markets at different locations that have initially been (partially) separated by transport costs. Rising competitive pressure should in turn affect incentives to differentiate products. In this paper investment decisions concerning transport cost reduction and product differentiation are analyzed in a heterogenous product duopoly where firms compete in two spatially separated markets. We show that firms always have nonnegative incentives to invest in transport cost reduction, while there exist parameter ranges where product differentiation will actually be reduced after an exogenous reduction of transport cost. We also compare social and privat investment incentives for both price strategies (most likely with digital products) and quantity competition (capacity decisions for physical products). Based on these results we discuss in detail how investment decisions are likely to differ from the efficient solution for each of the two kind of products.

Sprache
Englisch

Erschienen in
Series: Diskussionsbeiträge ; No. 2002,4

Klassifikation
Wirtschaft
Market Structure, Pricing, and Design: Oligopoly and Other Forms of Market Imperfection
Allocative Efficiency; Cost-Benefit Analysis
Oligopoly and Other Imperfect Markets
Thema
Electronic markets
Strategic investments
Transport costs
Product differentiation
Elektronische Märkte
Strategische Investition
Transportkosten
Produktdifferentierung
E-Business
Oligopol
Duopol
Betriebliche Investitionspolitik
Transportkosten
Produktdifferenzierung
Wettbewerb
Spieltheorie
Theorie

Ereignis
Geistige Schöpfung
(wer)
Bandulet, Martin
Morasch, Karl
Ereignis
Veröffentlichung
(wer)
Universität der Bundeswehr München, Fachgruppe für Volkswirtschaftslehre
(wo)
Neubiberg
(wann)
2002

Handle
Letzte Aktualisierung
10.03.2025, 11:43 MEZ

Datenpartner

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Objekttyp

  • Arbeitspapier

Beteiligte

  • Bandulet, Martin
  • Morasch, Karl
  • Universität der Bundeswehr München, Fachgruppe für Volkswirtschaftslehre

Entstanden

  • 2002

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