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Retail competition using free shopping shuttle bus strategies

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  • Chan Wang
  • Pu‐yan Nie

Abstract

Free shopping shuttle bus (FSSB) is a common strategy in some industries such as super market and real estate. After illustrating the application conditions for FSSB, this study surveys competition effects of FSSB strategy on retailers by a duopoly spatial Bertrand model. The conclusions of this article show that the cost of FSSB and features of the market are two crucial factors to determine whether the FSSB is employed or not. When the demands are fixed, firms do not benefit from FSSB. But if the market is not fully covered, FSSB strategy has significant positive effects on market size improvement.

Suggested Citation

  • Chan Wang & Pu‐yan Nie, 2020. "Retail competition using free shopping shuttle bus strategies," Managerial and Decision Economics, John Wiley & Sons, Ltd., vol. 41(6), pages 1010-1019, September.
    • Handle: RePEc:wly:mgtdec:v:41:y:2020:i:6:p:1010-1019
    DOI: 10.1002/mde.3155
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    References listed on IDEAS

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