Arbeitspapier

Product differentiation and entry timing in a continuous time spatial competition model

We extend the well-known spatial competition model (d'Aspremont et al., 1979) to a continuous time model in which two firms compete in each instance. Our focus is on the entry timing decisions of firms and their optimal locations. We demonstrate that the leader has an incentive to locate closer to the centre to delay the follower's entry, leading to a non-maximum differentiation outcome. We also investigate how exogenous parameters affect the leader's location and firms' values and, in particular, numerically show that the profit of the leader changes non-monotonically with an increase in the transport cost parameter.

Sprache
Englisch

Erschienen in
Series: ISER Discussion Paper ; No. 915

Klassifikation
Wirtschaft
Oligopoly and Other Imperfect Markets
Other Spatial Production and Pricing Analysis
Noncooperative Games
Thema
Location
Hotelling model
Continuous time
Entry timing

Ereignis
Geistige Schöpfung
(wer)
Ebina, Takeshi
Matsushima, Noriaki
Shimizu, Daisuke
Ereignis
Veröffentlichung
(wer)
Osaka University, Institute of Social and Economic Research (ISER)
(wo)
Osaka
(wann)
2014

Handle
Letzte Aktualisierung
10.03.2025, 11:43 MEZ

Datenpartner

Dieses Objekt wird bereitgestellt von:
ZBW - Deutsche Zentralbibliothek für Wirtschaftswissenschaften - Leibniz-Informationszentrum Wirtschaft. Bei Fragen zum Objekt wenden Sie sich bitte an den Datenpartner.

Objekttyp

  • Arbeitspapier

Beteiligte

  • Ebina, Takeshi
  • Matsushima, Noriaki
  • Shimizu, Daisuke
  • Osaka University, Institute of Social and Economic Research (ISER)

Entstanden

  • 2014

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