Software for the Computation of Markov-Perfect Equilibria in a Dynamic Game of Store Location by Multi-Store Firms

Aguirregabiria, Victor and Vicentini, Gustavo (2007): Software for the Computation of Markov-Perfect Equilibria in a Dynamic Game of Store Location by Multi-Store Firms.

Abstract

This document is a supplement of the paper "Dynamic Spatial Competition Between Multi-Store Firms" by Aguirregabiria and Vicentini (2007). It describes in detail the library of programs and procedures, in GAUSS language, that is used in that paper. The program computes an equilibrium of a dynamic game of store location and spatial competition by multi-store firms. The equilibrium of the game is a space-time stochastic process for the network of stores of each firm as well as for prices, markups, profits and consumer welfare at every location in the geographic market. We illustrate the use of the program with an example.

• Item Type: MPRA Paper
• Language: English
• Keywords: Dynamic Spatial competition; Store location; Market dynamics; Sunk costs
• Subjects: R - Urban, Rural, Regional, Real Estate, and Transportation Economics > R3 - Real Estate Markets, Spatial Production Analysis, and Firm Location > R30 - General; L - Industrial Organization > L8 - Industry Studies: Services > L81 - Retail and Wholesale Trade ; e-Commerce; L - Industrial Organization > L1 - Market Structure, Firm Strategy, and Market Performance > L13 - Oligopoly and Other Imperfect Markets; C - Mathematical and Quantitative Methods > C7 - Game Theory and Bargaining Theory > C73 - Stochastic and Dynamic Games ; Evolutionary Games ; Repeated Games

References

Aguirregabiria, Victor, and Gustavo Vicentini (2007): "Dynamic Spatial Competition Between Multi-Store Firms," manuscript. Department of Economics. University of Toronto.