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- Title
Product Location with Foresight.
- Authors
Sorenson, Timothy L.
- Abstract
Traditional location literature concludes that firms will optimally differentiale in order to alleviate a (endency toward competitive pricing. However, it has recently been shown that fIrms will minimally differentiate if they (correctly) anticipate an absence of pi-ice competition. This paper examines the relationship between product location and the sustainability of cooperative pricing, in horizontally arid vertically differentiated markets. Further, it describes equilibrium locations when firms are able to choose their locations jointly and when they must choose independently1
- Subjects
PRICING; ECONOMIC competition; BUSINESS enterprises; MANUFACTURED products; PRODUCT differentiation; ECONOMIC policy
- Publication
Review of Industrial Organization, 1998, Vol 13, Issue 5, p557
- ISSN
0889-938X
- Publication type
Article
- DOI
10.1023/A:1007745609321