Tinbergen Institute Discussion Paper No. 03-033/1
20 Pages Posted: 17 Jul 2003
Date Written: March 2003
This paper develops a model for multi-store competition between firms. Using the fact 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 is unique and when the firms have an equal number of outlets, prices are independent of the number of outlets.
Keywords: multi-store competition; hotelling; interlacing
JEL Classification: I18, D10, Z13
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