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.
- Language
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Englisch
- Bibliographic citation
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Series: ISER Discussion Paper ; No. 915
- Classification
-
Wirtschaft
Oligopoly and Other Imperfect Markets
Other Spatial Production and Pricing Analysis
Noncooperative Games
- Subject
-
Location
Hotelling model
Continuous time
Entry timing
- Event
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Geistige Schöpfung
- (who)
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Ebina, Takeshi
Matsushima, Noriaki
Shimizu, Daisuke
- Event
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Veröffentlichung
- (who)
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Osaka University, Institute of Social and Economic Research (ISER)
- (where)
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Osaka
- (when)
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2014
- Handle
- Last update
-
10.03.2025, 11:43 AM CET
Data provider
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ZBW - Deutsche Zentralbibliothek für Wirtschaftswissenschaften - Leibniz-Informationszentrum Wirtschaft. If you have any questions about the object, please contact the data provider.
Object type
- Arbeitspapier
Associated
- Ebina, Takeshi
- Matsushima, Noriaki
- Shimizu, Daisuke
- Osaka University, Institute of Social and Economic Research (ISER)
Time of origin
- 2014
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