Bacchiega, E.; Randon, E.; Zirulia, L. - Dipartimento di Scienze Economiche, Alma Mater … - 2010
We analyze the effect of competition in market-accessibility enhancement among quality-differentiated firms. Firms are located in regions with different ex-ante transport costs to reach the final market. We characterize the equilibrium of the two-stage game in which firms first invest to improve...