Price-sensitive demand and market entry

Yiquan Gu, Alexander Rasch, Tobias Wenzel

This paper revisits the optimal entry decision in a differentiated product market where customer demand is price-sensitive and depends on a per-unit transport cost. We show that too few firms may enter for high entry cost and high transport cost compared to the socially optimal outcome.

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Year of publication:	2014
Authors:	Gu, Yiquan ; Rasch, Alexander ; Wenzel, Tobias
Publisher:	Düsseldorf : DICE
Subject:	Circular city \| Horizontal product differentiation \| Market entry \| Price-sensitive demand \| Markteintritt \| Produktdifferenzierung \| Product differentiation \| Theorie \| Theory \| Nachfrage \| Demand

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Extent:	Online-Ressource (18 S.) graph. Darst.
Series:	DICE discussion paper. - Düsseldorf, Germany : düsseldorf university press, ISSN 2190-9938, ZDB-ID 2578649-0. - Vol. 165
Type of publication:	Book / Working Paper
Type of publication (narrower categories):	Arbeitspapier ; Working Paper
Language:	English
Notes:	Systemvoraussetzungen: Acrobat Reader
ISBN:	978-3-86304-164-9
Other identifiers:	hdl:10419/103374 [Handle]
Classification:	L11 - Production, Pricing, and Market Structure Size; Size Distribution of Firms ; L13 - Oligopoly and Other Imperfect Markets
Source:	ECONIS - Online Catalogue of the ZBW

Persistent link: https://www.econbiz.de/10010423860