The Library
When do co-located firms selling identical products thrive?
Tools
Tools
Tools
Bernhardt, Dan, Constantinou, Evangelos and Shadmehr, Mehdi (2023) When do co-located firms selling identical products thrive? Journal of Industrial Economics . (In Press)
![[img]](http://wrap.warwick.ac.uk/style/images/fileicons/application_pdf.png) |
PDF
WRAP-When-do-co-located-rms-selling-identical-products-2021.pdf - Accepted Version Embargoed item. Restricted access to Repository staff only - Requires a PDF viewer. Download (922Kb) |
Abstract
When consumers only see prices once they visit stores, and some consumers have time to comparison shop, co-location commits stores to compete and lower prices, which draws consumers away from isolated stores. Profits of co-located firms are a single-peaked function of the number of shoppers---co-located firms thrive when there are some shoppers, but not too many. When consumers know in advance whether they have time to shop, effects are enhanced: co-located stores may draw enough shoppers to drive the expected price paid by a non-shopper below that paid when consumers do not know if they will have time to shop.
| Item Type: | Journal Article | ||||||
|---|---|---|---|---|---|---|---|
| Divisions: | Faculty of Social Sciences > Economics | ||||||
| Journal or Publication Title: | Journal of Industrial Economics | ||||||
| Publisher: | Wiley-Blackwell Publishing Ltd. | ||||||
| ISSN: | 0022-1821 | ||||||
| Official Date: | 2023 | ||||||
| Dates: |
|
||||||
| Status: | Peer Reviewed | ||||||
| Publication Status: | In Press | ||||||
| Access rights to Published version: | Restricted or Subscription Access | ||||||
| Copyright Holders: | © John Wiley & Sons Ltd and the Editorial Board of the Journal of Industrial Economics | ||||||
| Related URLs: |
Request changes or add full text files to a record
Repository staff actions (login required)
 |
View Item |
