Spatial Price Discrimination with Heterogeneous Firms |
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| Authors: | Jonathan Vogel |
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| Institution: | Department of Economics, Columbia University, , New York, New York, U.S.A. |
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| Abstract: | In this paper we aim to explain intuitively heterogeneous firms’ optimal location decisions in a simple spatial market. To do so, we present and solve a four‐stage game of entry, location, pricing and consumption in a spatial price discrimination framework with arbitrarily many heterogeneous firms. We provide a unique equilibrium outcome without imposing restrictions on the distribution of marginal costs across firms. |
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