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来源类型 | Discussion paper |
规范类型 | 论文 |
来源ID | DP1328 |
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 |
URL | https://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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