Multi-store competition : market segmentation or interlacing?

Maarten C. W. Janssen; Vladimir A. Karamychev; Peran van Reeven

This paper develops a model for multi-store competition between firms. Using thefact that different firms have different outlets and produce horizontally differentiated goods, we obtain a pure strategy equilibrium where firms choose a different location for each outlet and firms' locations are interlaced. Moreover, generically, the subgame perfect equilibrium isunique and when the firms have an equal number of outlets, prices are independent of the number of outlets.

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Year of publication:	2004
Authors:	Janssen, Maarten C. W. ; Karamychev, Vladimir A. ; Reeven, Peran A. van
Publisher:	Rotterdam [u.a.] : Tinbergen Inst.
Subject:	multi-store competition \| hotelling \| interlacing \| Hotelling-Modell \| Hotelling model \| Marktsegmentierung \| Market segmentation \| Filiale \| Branch office \| Einzelhandel \| Retail trade \| Hotellerie \| Hotel industry