Price-sensitive demand and market entry

Gu, Y, Rasch, A and Wenzel, T (2015) Price-sensitive demand and market entry. Papers in Regional Science. ISSN 1056-8190

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Abstract

© 2015 RSAI.This paper revisits the optimal entry decision in a differentiated product market where customer demand is price-sensitive and depends on a per-unit transport cost. We show that compared to the socially optimal outcome, too few firms may enter when entry costs and transport costs are high.

Item Type:	Article
Subjects:	H Social Sciences > HB Economic Theory
Depositing User:	Symplectic Admin
Date Deposited:	30 Mar 2015 09:35
Last Modified:	02 Nov 2016 15:08
DOI:	10.1111/pirs.12165
URI:	http://livrepository.liverpool.ac.uk/id/eprint/2009018

Available Versions of this Item

• Price-sensitive demand and market entry. (deposited 30 Mar 2015 09:35) [Currently Displayed]
  • Price-sensitive demand and market entry. (deposited 02 Nov 2016 15:08)

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