Spatial price discrimination, sequential location and convex production costs

Simultaneous location is known to be socially superior to sequential location under spatial price discrimination given constant marginal production costs. For the first time I demonstrate that sequential location can be socially superior to simultaneous location given convex production costs. The asymmetric sequential locations lower the sum of production and transport cost below the symmetric but inefficiently distant simultaneous locations. © 2018, Springer-Verlag GmbH Germany, part of Springer Nature.