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| Author: | Rath, K.P. Zhao, G. |
| Title: | Two stage equilibrium and product choice with elastic demand |
| Journal: | International Journal of Industrial Organization
2001 : NOV, VOL. 19:9, p. 1441-1455 |
| Index terms: | ELASTICITY OF DEMAND EQUILIBRIUM ANALYSIS PRODUCT PREFERENCE |
| Language: | eng |
| Abstract: | This paper examines a two stage model of product choice with elastic demand. Duopolists choose locations and then prices. Consumers' demand is linear in price. Transportation cost is quadratic and is a lump sum. For each pair of locations, there is a price equilibrium in the second stage. |
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