Eleftheriou, Konstantinos and Michelacakis, Nickolas (2016): A Comment on "Sequential Spatial Competition in Vertically Related Industries with Different Product Varieties".
Preview |
PDF
MPRA_paper_73485.pdf Download (124kB) | Preview |
Abstract
The aim of this paper is to revise and correct the results obtained in Beladi et al. [Beladi, H., Chakrabarti, A., Marjit, S., 2010. Sequential spatial competition in vertically related industries with different product varieties. Economics Letters 106, 112-114]. Specifically, we prove that following a vertical merger, the downstream firms will locate away from the social optimum in the following manner: to the direction of the un-integrated follower or to a direction determined by the wholesale price charged to the un-integrated leader.
| Item Type: | MPRA Paper |
|---|---|
| Original Title: | A Comment on "Sequential Spatial Competition in Vertically Related Industries with Different Product Varieties" |
| Language: | English |
| Keywords: | Product differentiation; Spatial price discrimination; Sequential competition; Merger |
| Subjects: | D - Microeconomics > D4 - Market Structure, Pricing, and Design > D43 - Oligopoly and Other Forms of Market Imperfection L - Industrial Organization > L1 - Market Structure, Firm Strategy, and Market Performance > L13 - Oligopoly and Other Imperfect Markets L - Industrial Organization > L4 - Antitrust Issues and Policies > L42 - Vertical Restraints ; Resale Price Maintenance ; Quantity Discounts R - Urban, Rural, Regional, Real Estate, and Transportation Economics > R3 - Real Estate Markets, Spatial Production Analysis, and Firm Location > R32 - Other Spatial Production and Pricing Analysis |
| Item ID: | 73485 |
| Depositing User: | Konstantinos Eleftheriou |
| Date Deposited: | 03 Sep 2016 15:32 |
| Last Modified: | 08 Oct 2019 04:51 |
| References: | Beladi, H., Chakrabarti, A., Marjit, S., 2008. Vertical mergers and downstream spatial competition with different product varieties. Economics Letters 101, 262-264. Beladi, H., Chakrabarti, A., Marjit, S., 2010. Sequential spatial competition in vertically related industries with different product varieties. Economics Letters 106, 112-114. Braid, R.M., 2008. Spatial price discrimination and the locations of firms with different product selections or product varieties. Economics Letters 98, 342-347. Eleftheriou, K., Michelacakis, N.J. 2016. A comment on 'Vertical mergers and downstream spatial competition with different product varieties'. Economics Letters 143, 84-86. Hoover, E.M., 1937. Spatial price discrimination. Review of Economic Studies 4, 182-191. Lerner, A., Singer, H., 1937. Some notes on duopoly and spatial competition. Journal of Political Economy 45, 145-186. |
| URI: | https://mpra.ub.uni-muenchen.de/id/eprint/73485 |
All papers reproduced by permission. Reproduction and distribution subject to the approval of the copyright owners.
 |
View Item |
