On the rationale of spatial discrimination with quantity-setting firms

We show in a game-theoretic model that when quantity-setting firms first choose whether to discriminate or not and then set quantities, the unique equilibrium consists in all firms selling a uniform quantity to all consumers. This sharply contrasts with the case of price-setting firms.

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Year of publication:	2011
Authors:	Colombo, Stefano
Published in:	Research in Economics. - Elsevier, ISSN 1090-9443. - Vol. 65.2011, 3, p. 254-258
Publisher:	Elsevier
Subject:	Cournot Spatial discrimination Hotelling

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Type of publication:	Article
Source:	RePEc - Research Papers in Economics

Persistent link: https://www.econbiz.de/10009146413