Spatial Competition with Entry Deterrence considering Horizontal Product Differentiations | Zendy

Ai-g Zhou | Zendy

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Spatial Competition with Entry Deterrence considering Horizontal Product Differentiations

Author(s) -

Ai-g Zhou

Publication year - 2013

Publication title -

journal of applied mathematics

Language(s) - English

Resource type - Journals

SCImago Journal Rank - 0.307

H-Index - 43

eISSN - 1687-0042

pISSN - 1110-757X

DOI - 10.1155/2013/426345

Subject(s) - competition (biology) , deterrence theory , industrial organization , product (mathematics) , microeconomics , product differentiation , location theory , point (geometry) , horizontal and vertical , economics , business , computer science , mathematical economics , economic geography , mathematics , geometry , ecology , physics , cournot competition , nuclear physics , biology

Spatial competition plays important roles in economics, which attracts extensive research. This paper addresses spatial competitions along with horizontal product differentiations and entry deterrence. By the dynamic game theory model about one firm and a potential entrant with different cost in a linear city, this paper finds that both the higher fixed setup cost and the higher transportation cost deter entrants. To efficiently deter the entrants, the establisher is inclined to locating at the middle point of the linear city

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