Quality, Location and Collusion under Spatial Price Discrimination
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John S. Heywood
Abstract
We present the first demonstration of the influence of a quality rivalry on location choices under spatial price discrimination. The rivalry is shown to generate the socially efficient quality but to push locations inefficiently close together, a result not found under Hotelling pricing. We apply this new equilibrium to the anti-trust policy issue of collusion showing that introducing the quality rivalry reduces the likelihood of collusion.
Funding source: National Science Foundation of China
Award Identifier / Grant number: 71803137
Acknowledgements
Zheng Wang’s research was supported by the National Science Foundation of China (NSFC) [grant numbers: 71803137 and 71733001].
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- Can Targeted Child Benefits Affect Fertility? Evidence from a Natural Experiment
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- Letters
- Political Budget Cycle, Tax Collection, and Yardstick Competition
- Impacts of Jobs Requiring Close Physical Proximity and High Interaction with the Public on U.S. Industry Employment Change During the Early Stages of the COVID-19 Pandemic
- Quality, Location and Collusion under Spatial Price Discrimination
Articles in the same Issue
- Frontmatter
- Research Articles
- Media Capture and Bias in the Market for News
- Adaptation and Loss Aversion in the Relationship Between GDP and Subjective Well-Being
- Racial Disparity in COVID-19 Deaths: Seeking Economic Roots with Census Data
- Can Targeted Child Benefits Affect Fertility? Evidence from a Natural Experiment
- Does the Strength of Incentives Matter for Elected Officials? A Look at Tax Collectors
- Setting the Budget for Targeted Research Projects
- Can Unconditional In-Kind Transfers Keep Children Out of Work and in School? Evidence from Indonesia
- Anti-Mafia Law Enforcement and Lending in Mafia Lands. Evidence from Judicial Administration in Italy
- The Gender Wage Gap among Ph.D. Holders: Evidence from Italy
- Letters
- Political Budget Cycle, Tax Collection, and Yardstick Competition
- Impacts of Jobs Requiring Close Physical Proximity and High Interaction with the Public on U.S. Industry Employment Change During the Early Stages of the COVID-19 Pandemic
- Quality, Location and Collusion under Spatial Price Discrimination
