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Retailer Locations, Local Supply And Price Policies

Author

Listed:
  • Carlos Gutiérrez-Hita

    (Universidad de Alicante)

  • Martin Peitz

    (Universidad de Alicante)

Abstract

Two retailers operate in a monopsonistic, oligopolistic environment. They have to buy from spatially dispersed suppliers and use uniform pricing downstream. We characterize prices and location in the two-stage location-then-price game under two different pricing policies in the upstream market: uniform pricing and spatial price discrimination. We analyze how local supply conditions affect equilibrium locations and profits. We show that if retailers can choose a price policy initially they commit to uniform pricing in the upstream market.

Suggested Citation

  • Carlos Gutiérrez-Hita & Martin Peitz, 2001. "Retailer Locations, Local Supply And Price Policies," Working Papers. Serie AD 2001-26, Instituto Valenciano de Investigaciones Económicas, S.A. (Ivie).
    • Handle: RePEc:ivi:wpasad:2001-26
    as

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    File URL: http://www.ivie.es/downloads/docs/wpasad/wpasad-2001-26.pdf
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    References listed on IDEAS

    as
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    Cited by:

    1. Nikolaos Georgantzis & Carlos Gutiérrez-Hita, 2008. "Service provision on a network with endogenous consumption capacity," Working Papers. Serie AD 2008-01, Instituto Valenciano de Investigaciones Económicas, S.A. (Ivie).

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