Please use this identifier to cite or link to this item: http://hdl.handle.net/10419/103374
Authors: 
Gu, Yiquan
Rasch, Alexander
Wenzel, Tobias
Year of Publication: 
2014
Series/Report no.: 
DICE Discussion Paper 165
Abstract: 
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.
Subjects: 
Circular city
Horizontal product differentiation
Market entry
Price-sensitive demand
JEL: 
L11
L13
ISBN: 
978-3-86304-164-9
Document Type: 
Working Paper

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