Cournot Retail Chains

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Abstract:

In this paper a model of spatial Cournot competition among retail firms is devised and used to assess the effect of a variety of structural factors on retail prices and profits. The model illustrates the spatial chain of interaction that firms must anticipate to reach equilibrium when organized in chains or as independents. It shows the sensitivity of price to the location of stores, the number of stores per location, and transportation cost.

Document Type: Research Article

DOI: http://dx.doi.org/10.1111/0022-4146.00104

Affiliations: West Maryland College

Publication date: August 1, 1998

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