English, Article, Journal or magazine article edition: Location in a vertically differentiated industry Emmanuele, BACCHIEGA; Antonio, MINNITI

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Bookmark: http://trove.nla.gov.au/version/177950
Physical Description
  • preprint
Language
  • English

Edition details

Title
  • Location in a vertically differentiated industry
Author
  • Emmanuele, BACCHIEGA
  • Antonio, MINNITI
Physical Description
  • preprint
Notes
  • We analyze a model of a vertically differentiated duopoly with two regions. These two locations differ for the market size or for the distribution of the willingness to pay for quality of their consumers. Firms sequentially choose to settle in one region and then simultaneously compete in prices, selling their products both on the local market and on the foreigner one. We show that the decision whether to agglomerate or not crucially depends on the extent of regionsÕ asymmetries, but, counter intuitively, there are parametric configurations in which the model predicts that the leader (the first firm choosing location) settles either in the poorer or in the smaller region, leaving the other one to the follower.. Welfare analysis completes the paper.
  • Regions; Vertical Differentiation; Oligopoly
  • RePEc:ctl:louvec:2005050
Language
  • English
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