Price‐sensitive demand and market entry



Gu, Yiquan ORCID: 0000-0002-4594-4852, Rasch, Alexander and Wenzel, Tobias
(2016) Price‐sensitive demand and market entry. Papers in Regional Science, 95 (4). pp. 865-876.

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Abstract

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
Uncontrolled Keywords: Comparative Effectiveness Research
Subjects: ?? HB ??
Depositing User: Symplectic Admin
Date Deposited: 02 Nov 2016 15:08
Last Modified: 16 Mar 2024 05:53
DOI: 10.1111/pirs.12165
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URI: https://livrepository.liverpool.ac.uk/id/eprint/3003940

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