Janssen, Maarten C.W. Karamychev, Vladimir A. van Reeven, Peran
Year of Publication:
Tinbergen Institute Discussion Paper 03-033/1
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.