Cournot and Bertrand Competition in a Model of Spatial Price Discrimination with Differentiated Products

摘要: This study investigates spatial price discrimination with two types of market competition – and quantity kinds cross-relations between goods substitutes complements endogenous location choices in a barbell model. The results herein present that the maximum differentiation (end point agglomeration) is unique equilibrium (complements), irrespective what type competition. We demonstrate if unit transportation rate sufficiently high, then consumer surplus, profits, social welfare are higher under than for both complements. means introducing barrier to generated through costs may solve problem inconsistency from conflict interests consumers, firms, planner.