Urban/rural spatial price discrimination with online competition

被引:0
|
作者
Guo, Wen-Chung [1 ]
Lai, Fu-Chuan [2 ,3 ]
机构
[1] Natl Taipei Univ, Dept Econ, 151 Univ Rd, Taipei 23741, Taiwan
[2] Acad Sinica, Res Ctr Humanities & Social Sci, Taipei 11529, Taiwan
[3] Natl Chengchi Univ, Dept Publ Finance, Taipei, Taiwan
来源
ANNALS OF REGIONAL SCIENCE | 2024年 / 73卷 / 01期
关键词
R30; L13; QUADRATIC TRANSPORT COSTS; STRATEGIES; LOCATIONS; DUOPOLY; CHOICE; IMPACT;
D O I
10.1007/s00168-024-01267-0
中图分类号
F [经济];
学科分类号
02 ;
摘要
We contribute to the previous offline spatial price discrimination by adding an online entrant that results in partially equalized prices, and the urban (rural) segments are served by the offline (online) firms. The presence of online competition prompts offline firms to relocate nearer to the market center. The online firm's advantage in servicing remote areas grants it market power, enabling it to mark up its prices. This leads to a shift in the equilibrium locations of firms, causing them to diverge from socially optimal positions. The magnitude of this online advantage directly influences market dynamics: a greater advantage correlates with higher online prices, a reduced dispersion of offline firm locations, and decreased offline prices in urban regions. Finally, zoning policies and two extensions of online price discrimination and multiple offline firms with free entry are offered.
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页码:323 / 361
页数:39
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