G2TT
来源类型Discussion paper
规范类型论文
来源IDDP1328
DP1328 From Local to Global Competition
Simon Anderson; André de Palma
发表日期1996-01-31
出版年1996
语种英语
摘要Using two standard location models, we investigate price competition and divergence from optimal product differentiation when consumer preferences are influenced by the number of consumers purchasing the same brand or shopping at the same store. Negative network effects tend to lessen competition and increase prices whereas positive network effects (bandwagon effects) make competition fiercer and lead to lower prices. Furthermore, in the duopoly case, an increase in total population may adversly affect the clients of a store despite the fact that they benefit from price cuts. Finally, under free entry, increasing the population may lead to a reduction in the equilibrium number of stores and always increases the divergence between the equilibrium and optimal numbers of stores.
主题Industrial Organization ; International Trade and Regional Economics
关键词Location Network effects Network externalities Product differentiation
URLhttps://cepr.org/publications/dp1328
来源智库Centre for Economic Policy Research (United Kingdom)
资源类型智库出版物
条目标识符http://119.78.100.153/handle/2XGU8XDN/530465
推荐引用方式
GB/T 7714
Simon Anderson,André de Palma. DP1328 From Local to Global Competition. 1996.
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