CIRJE-F-360 "Spatial Competition in Variety and Number of Stores"
Author Name Peng, Shin-Kun and Takatoshi Tabuchi
Date August 2005
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Remarks Subsequently published in Journal of Economics and Management Strategy, vol. 16, pp. 227-250, 2007.
Abstract

We propose location-then-variety competition for a multi-product and multi-store oligopoly, in which the number of firms, the number of stores and their location, and the number of varieties are endogenously determined. We show that as compared to price-then-variety competition, location-then-variety competition with multi-stores yields a much richer set of equilibrium outcomes, such as market segmentation, interlacing, sandwich and enclosure.